Trump’s 25% tariffs trigger global auto market selloff

Shafaq News/ US President Donald Trump’s decision to impose a 25% tariff on all foreign-made cars and light trucks starting April 2 has drawn sharp criticism from major trade partners and triggered a selloff in global auto markets.

Japanese Prime Minister Shigeru Ishiba said Tokyo is considering “all options” in response, stressing that automobiles account for nearly 28% of Japan’s exports to the US. “Japan has created thousands of jobs in the US. That contribution must be recognized,” he told parliament.

Canadian Prime Minister Mark Carney slammed the tariffs as a “direct attack” and pledged to defend domestic workers and industries. “This will hurt us, but we will respond with unity and resolve,” he stated.

European Commission President Ursula von der Leyen labeled the measure harmful to both sides, noting the EU would “evaluate the impact and safeguard its interests.”

Brazilian President Luiz Inácio Lula da Silva, speaking in Tokyo, warned that unilateral US actions would not go unanswered.

The announcement also sent auto stocks tumbling. General Motors fell 3%, Ford 1.5%, while shares of Toyota, Mitsubishi, Nissan, and Honda dropped between 2.7% and 3.7% on the Tokyo Stock Exchange.

Analysts cautioned the move could undermine US automakers by raising production costs and reducing competitiveness due to reliance on imported components.

The Trump administration has imposed a range of tariffs since he took office, targeting Chinese goods as well as steel and aluminum imports. In February, Trump approved 25% tariffs on Mexican and Canadian imports, though he postponed implementation by a month after both countries agreed to new border security measures.