Donald Trump places 25% tariffs on auto imports to the US

US President Donald Trump on Wednesday said he was placing 25% tariffs on auto imports, a move that the White House claims would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains.

“This is permanent,” Trump said, underscoring his seriousness about the tariffs directive.

The tariffs come as observers and experts warn that this could in fact affect the US automotive industry, as even US automakers source their components from around the world, meaning that they could face higher costs and lower sales.

In reaction to Trump's announcement, General Motors shares plunged roughly 3% in Wednesday afternoon trading while Ford’s stock was up slightly. Shares in Stellantis, the owner of Jeep and Chrysler, have dropped nearly 4%.

Canada calls Trump’s auto tariffs ‘direct attack.’

Canadian Prime Minister Mark Carney says he needs to see the details of Trump’s executive order before taking retaliatory measures.

He called it unjustified and said he will leave the election campaign to go to Ottawa on Thursday to chair his special Cabinet committee on U.S. relations.

Earlier, Carney announced a CA$2 billion ($1.4 billion) “strategic response fund” that will protect Canadian auto jobs affected by Trump’s tariffs.

Autos are Canada’s second-largest export, and Carney noted it employs 125,000 Canadians directly and almost another 500,000 in related industries.

Carney says it is appropriate that he and Trump speak on the phone. The two have not spoken since Carney was sworn in on 14, March.