US President Donald Trump has announced a 25 percent tariff on car imports. There are fears that Trump’s decision will encourage trading partners to take retaliatory measures, which will further spread the trade war.
After Trump’s announcement, the prices of carmakers’ shares fell sharply as Asian markets opened on Thursday.
The Japanese government described Washington’s move as “very regrettable.” Prime Minister Shigeru Ishiba said that Tokyo was considering all kinds of countermeasures.
“What we are going to do is impose a 25 percent tariff on all cars that are not made in the United States. The tariff will take effect on April 3,” Trump said while signing the order in the Oval Office.
Canadian Prime Minister Mark Carney called Trump’s tariff imposition a direct attack on his country’s workers. He also noted that he would meet with his cabinet on Thursday to discuss countermeasures.
Donald Trump has previously imposed a 25 percent import tariff on all steel and aluminum entering the United States. According to experts, his new trade policy will have the greatest impact on Canada.
Canada and Mexico are among the largest steel trading partners of the United States. In addition, Canada is also the country’s largest aluminum supplier.
Recently, Trump threatened to impose a 200 percent tariff on wine and champagne, as well as other alcoholic products from France and other European Union countries. Sources: New York Times, Reuters, BBC, Al-Jazeera.