President Trump moves forward with plans to impose new auto tariffs

Starting April 3rd, a 25% duty on vehicles assembled outside the U.S. will take effect, with tariffs on imported auto parts set to follow by May 3rd.

(CNN)- As President Trump’s administration moves forward with plans to impose new auto tariffs, U.S. trade partners are preparing to retaliate. Starting April 3rd, a 25% duty on vehicles assembled outside the U.S. will take effect, with tariffs on imported auto parts set to follow by May 3rd.

The North American auto industry is a collaboration between the U.S., Canada, and Mexico, but if these tariffs are implemented, Canada’s Prime Minister Mark Carney says his country will respond forcefully. “Nothing is off the table to defend our workers and our country,” he stated. Carney also mentioned that Canada is exploring new trade partnerships and would target U.S. goods in a way that minimizes the impact on Canadian industries. “We will fight the U.S. tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada,” Carney added.

The decision to impose these tariffs has raised concerns among economists and experts. Former U.S. Council of Economic Advisers Chair Jason Furman warned, “It’s gonna disadvantage our car industry, and it could eventually cause even more pain in terms of job loss in the long run.”

Other international leaders have also expressed strong opposition. The President of Mexico has stated that a response will come next week, while Germany’s economy minister declared, “We will not back down.” Japan’s Prime Minister echoed similar sentiments, saying “all options” are on the table regarding the tariffs. Pierre Wunsch, Governor of the National Bank of Belgium, added, “It’s a lose-lose, and that’s also frustrating.”

Most economists agree that Trump’s tariffs could lead to higher car prices for U.S. consumers. However, the administration has downplayed these concerns. White House Senior Counselor for Trade and Manufacturing Peter Navarro argued, “The 25 percent tariff is going to be absorbed in a lot of different ways, and we’re gonna race to get more production here, and on net, consumers are going to be better off.”