US tariffs on imported autos go into effect as markets reel from Trump’s trade escalation

The steep 25% tariffs for vehicles imported into the United States came into force early on Thursday morning, as international leaders reacted and the markets were rolled up by the announcement of President Donald Trump hours earlier for even more tariffs, which will start this week and next week.

The car ravifs that are applied to imported cars, SUVs, minoves, trucks and light trucks can increase the prices of cars by thousands of dollars, according to experts.

In general, half of the approximately 16 million vehicles purchased in the United States last year were imported, according to the White House.

The White House advertises tariffs as a means of protecting the US national security and economic power, saying that the automotive industry in the United States has been undermined by excessive imports.

Experts say US buyers will almost certainly see higher prices for foreign cars, as increased rates are transmitted to consumers. This sticker shock can also send prices higher for used vehicles.

Tariffs of 25% of key import auto parts, including engines and electrical components, were embedded to come into force later.

The car tariffs came into force only hours after Trump presented a long-rated broad tariff plan, which included a major import tax from all trading partners, as well as steeper on countries that impose fees on US goods.

“My fellow Americans, this is the day of Liberation,” Trump of the White House Rose Garden said, claiming that his last action would release the US from dependence on foreign goods.

According to the plan, the goods imported from China will be affected by what Trump called “kind reciprocal” tariffs of 34%; The goods imported from the European Union will be affected by 20% tariffs.

Overall, the tariffs announced by Trump, “approach levels that are not visible after” Smoot-Hawley’s Tariff Law of 1930, “said two experts from the Cato Institute, a libertarian turt During the Great Depression.

Last month, Trump also struck a 25% tariff for steel and aluminum imports, as well as certain goods from China, Canada and Mexico.

Trump made his message on Wednesday after the stock exchange closed for the day, but stock futures were immersed in the news. The industrial average of Dow Jones fell by 1100 points or 2.7%. S& P 500 Futures lost 3.9%, and NASDAQ-100 futures fell by 4.7%.

International leaders have identified Trump’s message.

“China is calling on the United States to immediately cancel their one -sided tariff measures and correctly resolve the differences with their commercial partners through equal dialogue,” a spokesman for Chinese Ministry of Commerce said in a statement that tariffs will “threaten the global economic development and stability of the supply chain.”

Trump’s announcement on Wednesday, which wave 34% tariffs for China, is at the top of 20% tariffs, which he has previously announced – as the total volume imposed against one of the largest trading partners in the United States, up to 54%.

The European Union said it has a “strong revenge plan” that European Commission President Ursula von der Leyen will be delivered on Thursday.

Facebook publication, Italian Prime Minister Georgy Meloni called the tariffs aimed at the European Union “wrong”.

She added: “We will do our best to work for an agreement with the United States in order to avoid a trade war that would inevitably weaken the West in favor of other global players.”

Trade maneuvers have a strained relationship with Canada and Mexico, two key allies and neighbors. No country is included in the list of countries to be affected by reciprocal tariffs.

Mexico said he would give his answer later this week.

Alexandra Hüzler, Liya Sarnof and Max Zan have contributed to this report, Liya Sarnof and Max Zan contributed