President of the United States of America, Donald Trump, has announced a 25% import tax on cars and car parts, set to take effect on April 2 for vehicles and at a later date for parts.

He argued the move would boost the US car industry by driving job creation and investment.

The White House clarified that tariffs on car parts from Mexico and Canada would be temporarily exempt while a duty-assessment system is established.

The US imports around eight million cars annually, with Mexico, South Korea, Japan, Canada, and Germany being the top suppliers. 

In response, Japanese Prime Minister Shigeru Ishiba has pledged to explore all options while Canadian Prime Minister Mark Carney labeled the move a direct attack on his country’s auto industry.

 European Commission President Ursula von der Leyen also criticized the tariffs, emphasized the negative impact on both businesses and consumers.

 Despite growing opposition, Trump remained firm, declaring the policy permanent and urging carmakers to manufacture in the US to avoid the tariffs.