US President Donald Trump delivers remarks on auto tariffs and other topics in the Oval Office at the White House March 26, 2025.Photo: VCG
US President Donald Trump on Wednesday unveiled a new 25-percent tariff on imports of automobiles and certain automobile parts, the latest in a series of tariff threats against US trade partners since taking office. Canada and the EU swiftly responded with opposition.
The 25 percent tariff will be applied to imported passenger vehicles, light trucks, and key auto parts, with processes to expand tariffs on additional parts if necessary, according to a statement the White House released on Wednesday (US time).
The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as even US automakers source their components from around the world, US media outlet Associated Press (AP) reported.
Canadian Prime Minister Mark Carney called Trump's auto tariffs a "direct attack" on Canadian workers, Canadian media outlet CTV News reported.
Carney said the Liberal government has imposed some retaliatory tariffs already. "There'll be more," he said, adding there are additional options for retaliatory tariffs, according to the report.
European Commission President Ursula von der Leyen on Wednesday night expressed deep regrets about the US' latest tariffs.
Tariffs are taxes - bad for businesses, worse for consumers, in the US and the EU. The EU will continue to seek negotiated solutions, while safeguarding its economic interests, she wrote on X.
In the meantime, with the US set to implement "reciprocal tariffs" on April 2, countries have been taking steps in response. South Korea has tightened origin labeling inspections, India and Vietnam have lowered tariffs on US imports, and the UK is weighing changes to its digital services tax. Canada and the EU signaled tougher countermeasures if needed.
At home, US consumers and businesses also voiced growing concern over the tariffs' impact.
According to Reuters, US consumer confidence plunged to the lowest level in more than four years in March, with households fearing a recession in the future and higher inflation because of tariffs.
"Worries about the impact of trade policies and tariffs in particular are on the rise," and "there were also more references than usual to economic and policy uncertainty," Reuters reported, citing the Conference Board, a nonprofit research organization that provides economic insights, including consumer confidence data.
Economists and investment firms continue to warn of rising recession risks in the US.
A recent Deutsche Bank survey indicated a nearly 50-percent chance of the US economy slipping into recession this year, according to media reports on Monday.
Global Times
