Trump’s New Tax Sparks Turmoil in Global Car Industry

On Wednesday, the former U.S. president announced a massive 25% tariff on all cars imported into the United States — a huge jump from the current 2.5%.

“What we’re going to be doing is a 25% tariff for all cars that are not made in the United States,” Trump said from the Oval Office. “We start off with a 2.5% base... and go to 25%.”

He says the new tariffs will kick in next week, on April 2, and the U.S. will start collecting the duties the following day. And in true Trump fashion, he dubbed April 2 “liberation day.”

Trump’s promising that this move will spark economic growth — calling it “very exciting” — but not everyone’s on board.

What’s behind this?

Trump’s been banging this drum for a while — claiming the U.S. is getting ripped off by trade partners and that tariffs are the fix. Earlier this year, he floated the idea of a 25% auto tariff, but now he’s putting it into motion. And apparently, that’s just the start — he’s also expected to unveil a bunch of "reciprocal tariffs" soon, targeting goods from countries the U.S. thinks are taxing American products unfairly.

So… who’s affected?

Mexico, Japan, South Korea, Canada, and Germany are some of the biggest car exporters to the U.S. — and they’re not thrilled.

Canadian PM Mark Carney hit back hard, calling the move a “direct attack” on Canadian workers.

“We will defend our workers, our companies, and our country,” Carney said.

The European Union also condemned the move, while industry groups sounded the alarm.

Candace Laing, head of the Canadian Chamber of Commerce, didn’t mince words:

“Throwing away tens of thousands of jobs on both sides of the border... this tax hike puts plants and workers at risk for generations, if not forever.”

What could this mean for you?

A study by Anderson Economic Group found that these kinds of blanket tariffs could raise U.S. car prices by up to $12,000 — especially if Canada and Mexico get hit.

Even U.S. investors are spooked — automaker stocks dropped, and equity index futures slid after the news broke, signaling Wall Street’s not too happy either.

And while Trump insists tariffs are already “pouring money” into the country, a recent Harris poll tells a different story:

• 90% of Democrats,

• 69% of independents, and

• even 57% of Republicans

say they’re worried about how tariffs will hit their wallets.

But in classic Trump style, he brushed off concerns, posting:

“Have no fear, we will WIN everything!!!” on Truth Social

Trump’s all in on tariffs — but critics say it could backfire, raising prices, killing jobs, and shaking up the auto industry big time. Let’s see how this one plays out.