Donald Trump’s 25% auto import tariffs trigger global outrage—Canada, Japan, EU and South Korea vow countermeasures

In a significant development, US President Donald Trump on Wednesday announced 25 per cent tariffs on overseas auto imports. The tariffs will be imposed on cars and light trucks imported into the US from April 2 and auto parts from May 3. According to the White House, it will strengthen domestic manufacturing. Trump said, “This will continue to spur growth. We'll effectively be charging a 25 per cent tariff.”

The move has received flak worldwide, with various countries like Canada, Japan, and South Korea, including the European Union. Saying “this is permanent”, Trump believes this could lead to factory openings in the United States and eliminate what he terms a “ridiculous” supply chain involving the United States, Canada, and Mexico.

‘Direct attack on Canada’

Canadian Prime Minister Mark Carney responded to Trump's auto import tariff as a “direct attack” on his country. He said the trade war is affecting Americans, and American consumer confidence is on the decline for the long term. “We will defend our workers. We will defend our companies. We will defend our country. Canada will be there for auto workers. He (Trump) wants to break us so America can own us. And it will never ever happen because we just don’t look out for ourselves; we look out for each other. The relationship between Canada and the United States has changed. We did not change it,” AP quoted Carney as saying.

Japan considers ‘appropriate measures’

Japanese Prime Minister Shigeru Ishiba said that his government is mulling “appropriate measures” after US tariffs on car imports. “We have to think about appropriate measures following this announcement. Naturally, we will consider all options. Japan has made significant investments and significant job creation, which doesn’t apply to all countries… We are the number one (country) in investment in the United States,” Ishiba told Parliament.

He added, “The US president’s understanding of this is significantly deepening. However, various things are happening, so we are considering all kinds of countermeasures, and those exist as our options.” Shares in Japanese auto giants fell heavily. Mitsubishi Motors saw a down of 4.5 per cent, while Mazda and Subaru dropped 5.9 and 6.1 per cent, respectively.

'EU seeks negotiated solutions'

European Commission President Ursula von der Leyen slammed the Trump's latest move and cautioned it could augment trade tensions. According to reports, she said, “I deeply regret the US decision to impose tariffs on European automative exports.” EU will demand negotiated solutions while safeguarding its economic interests, she said. “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union,” Von der Leyen added.

‘South Korea auto companies won’t fight alone amid global uncertainties'

South Korea Industry Minister Ahn Duk-geun, in a meeting with officials on Thursday, said, “Global uncertainties are growing, but South Korean auto companies will not be fighting alone. The government will consider financial assistance, investment support, and help with market diversification.” Hyundai shares dipped 2.7 per cent in South Korea after Trump's announcement.