Trump slaps 25% tariff on ALL cars imported to US in huge blow to global auto industry with fears for UK businesses
DONALD Trump has slapped a whopping 25 per cent tariff on all foreign-built cars in a huge blow to global car manufacturers.
Trump says that car tariff, which will go into effect on April 2, will lead to a "tremendous growth in the auto industry".
The US is one the biggest motor markets for many global car giants - including Japanese automakers Toyota, Honda, Nissan, Mazda and Subaru - who will now be hit hard.
This also includes the UK, which exported £6.4 billion worth of cars to the US in 2023 - accounting for 18.4 of all the UK's car exports.
Making the announcement, Trunpo said from inside the Oval Office: "This is the beginning of Liberation Day in America.
"If you build your car in the United States, there will be no tariff."
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Asked if there was anything carmakers could do to have the tariffs removed, Trump replied: “This is permanent, 100 per cent.”
Trump has extended his punishing trade war to now impact the entire world as fears grow for key UK industries.
The US president also previously announced 25 per cent tariffs on all steel and aluminium imports coming into the US - with the EU already hitting back hard.
Trump’s tariffs are now set to have a huge impact on the UK steel industry.
They have already warned that the decision to impose a transatlantic trade war “couldn’t come at a worse time”.
The UK Business Secretary has described the decision to impose global tariffs on steel and aluminium as "disappointing".
Jonathan Reynolds added that "all options" are on the table to respond in the national interest.
The British government has already said they don't want to retaliate and would rather come to an amicable solution.
Chancellor Rachel Reeves announced last week that tit-for-tat tariffs only risk slowing down the whole global economy.
She said she didn’t think tariffs “serve anyone well”.
Adding, “We don’t want to see tariffs. I will continue to make the case with all my international counterparts for free and open trade.”
Despite the UK staying firm in their hopes for a peaceful resolution, the European Union has already announced a huge two-stage retaliation against the US, which will cover €26 billion in EU exports.
From April 1, the European Commission says it will reimpose tariffs in response to Trump's global tariffs.
This will have a direct impact on many iconic American brands, such as Harley-Davidson.
Then, from mid-April, further countermeasures will be applied if EU member states all approve.
European Commission President Ursula von der Leyen said today, “We deeply regret this measure.
“Tariffs are taxes. They are bad for business and even worse for consumers.
"These tariffs are disrupting supply chains. They bring uncertainty to the economy.
"Jobs are at stake. Prices will go up. In Europe and in the United States.
"The European Union must act to protect consumers and business.”
They added that any decision can always be reversed if the Trump administration is ready to "find a negotiated solution”.
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