Trump Announces 25% Tariff on Imported Cars to the US

US President Donald Trump has announced a new tax policy, imposing a 25% tariff on imported cars and car parts. According to the BBC, the new tax will take effect from April 2, while tariffs on car parts will be implemented from May or later.

Trump claims this decision will boost the American auto industry, create more jobs and attract investment. However, experts warn that it could spark a global trade war, increase car prices, and strain relations with allied nations.

The US imported around 8 million cars last year, with a total trade value of $240 billion. Mexico is the largest exporter of cars to the US, followed by South Korea, Japan, Canada and Germany.

With this move, the global car trade and supply chain could face major disruptions, raising concerns among automakers and trading partners worldwide.