BREAKING: The U.S. President Donald Trump officially announces 25% tariffs on car imports to the United States

According to President Trump, vehicles and auto parts entering the US would now be subject to a 25% tariff.

Trump stated that the new taxes would go into effect on April 2 and that companies who import automobiles would be subject to additional fees the following day. In May or later, parts will be subject to taxes.

In addition to helping create jobs and draw investment to the US, the president said the decision would result in “tremendous growth” for the industry.

However, analysts predict that the action will likely result in a temporary halt to much of the US auto industry, raise costs, and complicate relations with allies.

Trump’s recent action has the potential to disrupt global auto supply networks and trade.

Last year, around eight million cars were imported into the United States from other nations. This accounted for over half of all sales and $240 billion (£186 billion) in trade.

The majority of US automobiles are imported from Mexico. Germany, Canada, Japan, and South Korea rank second through fifth.

Due to a long-standing free trade agreement, several US automakers also conduct business in Mexico and Canada.

According to the White House, the order would apply to both completed automobiles and auto parts, which are frequently imported from foreign nations before being assembled.

The White House stated that until US customs and the border guard establish a method to determine the duties, the additional tariffs on parts from Canada and Mexico will not be implemented. Every day, goods valued at billions of dollars move between neighbouring countries.

On Wednesday, General Motors’ stock dropped almost 3%. When the president announced the tariffs, Ford was one of the corporations that went out of business.