Trump’s auto tariffs trigger global response
(VOVWORLD) - The global auto industry and financial markets have been rattled by US President Donald Trump's decision to impose a 25% tariff on all foreign-made vehicles, beginning next Thursday. Major trading partners are considering retaliatory measures.
Cars are unloaded CuxPort port in Cuxhaven, northern Germany. (Photo: VNA) |
Canadian Prime Minister Mark Carney called the tariffs a "direct attack" on auto workers and said he will speak with Trump in the coming days to address the trade war. The Canadian Automaker Association urged the government to impose immediate retaliatory tariffs on US goods.
German Chancellor Olaf Scholz criticized Trump's decision on Thursday, calling it "wrong" and warning that it will harm the economy and shared prosperity. German government officials said Germany and the European Union will defend free trade and consider appropriate countermeasures.
Mexican President Claudia Sheinbaum said the tariffs violate the US-Mexico-Canada Free Trade Agreement (USMCA). She said if the US maintains high tariffs, Mexico must be granted preferential treatment to safeguard its economy. Mexico is expected to announce a "comprehensive response" in early April. Meanwhile, Trump has pledged to impose reciprocal tariffs on all US trading partners but left the door open for negotiations.
Industry experts predict that once the tariffs take effect, car prices in the US will rise by 4,000-5,300 USD per vehicle.