Washington – Arab Canada News

US President Donald Trump announced a 25% tariff on all imported cars into the United States that are not manufactured within American territory, in a move described as aimed at “protecting the national industry and bringing back jobs to American workers.”

Trump said at a press conference from the White House:

“It is no longer acceptable for American markets to be flooded with foreign cars while we lose our jobs and factories. The new tariffs will restore balance and stimulate investment within the country.”

International reactions and economic warnings

The decision is considered a significant escalation in Trump’s “America First” policy, and it could ignite trade tensions with several of the United States' key partners, including Canada, Mexico, Japan, South Korea, and the European Union, who heavily rely on exporting cars to the American market.

The move has raised widespread concerns among global automotive companies, which depend on complex supply chains that stretch across borders. Experts believe that this decision could lead to higher car prices in the American market, disruptions in production lines, and a slowdown in new investments.

Growing Canadian concern

For Canada, the decision is a direct blow to the national automotive sector, which heavily relies on exports to the United States. The announcement comes at a time when the Canadian government is trying to strengthen its position in the industry through expanded local manufacturing plans, such as the “Made in Canada” initiative recently announced by the Liberal Party.

Implications for trade agreements

This decision could pose real challenges for the future of the United States-Mexico-Canada Agreement (USMCA), especially if the decision is considered a violation of the spirit of the agreement or its regulatory constraints.

While awaiting official reactions from the affected governments, observers believe that this step could ignite a wave of retaliatory measures, signaling a new round of global trade disputes.

Would you like to prepare a visual comparison showing the dependency rate of some countries on the American car market?