DAILY MENTOR Exclusive
Washington D.C. – U.S. President Donald Trump escalated his trade offensive Wednesday, slapping 25% tariffs on all foreign-made vehicles and key auto parts in a move that rattled global markets and drew immediate threats of retaliation from major trading partners.
The Decree
At an Oval Office signing ceremony, Trump declared: "We're imposing a 25% tariff on every car not built in America." The measures take effect April 3 (0401 GMT), targeting:✓ Imported passenger vehicles & light trucks
✓ Critical automobile components (within 30 days)
✓ Exemptions for USMCA-compliant vehicles with sufficient American content
Global Fallout
Financial markets reacted violently:Toyota shares plunged 3%
Japan's PM Ishiba: "All countermeasures under consideration"
Canada's Carney: "This attacks our workers"
Brazil's Lula: "We won't remain passive"
White House trade advisor Peter Navarro accused Germany and Japan of economic manipulation, claiming they reserve high-value part manufacturing for domestic producers.
Domestic Divisions
Even Trump allies expressed concerns:🚗 Elon Musk warned of "non-trivial" cost hikes for Tesla
📉 Detroit's Big Three automakers fear consumer price spikes
💼 AAPC cautioned tariffs must "preserve competitiveness"
Broader Trade War
The auto tariffs supplement existing levies on:• Chinese goods ($370B annually)
• Canadian/Mexican steel (25%)
• Aluminum imports (10%)
Trump previewed "Liberation Day" measures coming April 2 – reciprocal tariffs tailored to each trading partner. "These will affect every nation," he warned.
Expert Warnings
• Asia Society's Wendy Cutler: "Devastates trusted partners, undermines trade pacts"• CAR research: Could add thousands to vehicle prices
• 50% of U.S.-sold cars contain foreign parts
Market Shockwaves
Pre-announcement selloffs hit:🇺🇸 GM/Stellantis: -3%
🇯🇵 Mazda/Subaru: -6%
🇰🇷 Hyundai: -2.7%
What's Next
The administration plans sector-specific tariffs on:➤ Pharmaceuticals
➤ Semiconductors
➤ Lumber
#TradeWar #AutoIndustry #TrumpTariffs #GlobalEconomy
Sources: White House briefings, market data, international government statements