Trade War Intensifies as Trump Imposes Tariffs on Imported Vehicles

In a significant escalation of an ongoing global trade war, U.S. President Donald Trump announced a new tariffs of 25% on imported vehicles, effective April 3. The move, which has been met with widespread condemnation, is expected to exacerbate strained international relations and potentially cripple the European automotive sector.

Leading European figures like German Economy Minister Robert Habeck and European Commission President Ursula von der Leyen have been vocal in their criticism, describing the tariffs as harmful to businesses and consumers alike. The response from Ottawa was equally strong, with Canadian Prime Minister Mark Carney labeling the levies a ‘direct attack’ and signaling potential retaliatory actions.

The impact of these tariffs is expected to ripple through the global economy. Industry experts warn of rising costs, falling demand, and potential layoffs, further burdening a sector already grappling with high costs and increased foreign competition. With the U.S. keen to address its trade deficit, the risk of a global economic downturn looms larger than ever.

(With inputs from agencies.)