Trump imposes 25pc tariff on foreign car imports

US President Donald Trump has is carrying out his threat to impose a 25 per cent tariff on all foreign car and van imports, and it is expected that tariffs on imported vehicle components into the United States. This threatens European producers in their largest single export market. Mr. Trump signed the executive order yesterday.

The new “permanent” tariffs, set to take effect on April 2, what Mr. Trump is calling ‘liberation day’.

The massive increase from the current 2.5 per cent levy is a move that Mr. Trump believes will strengthen American domestic manufacturing.

He said: “This is the beginning of Liberation Day in America.” Adding: “If you build your car in the United States, there will be no tariff.”

Europe’s Response
In response to Trump’s original announcement, European Commission President Ursula von der Leyen said: “The EU will continue to seek negotiated solutions, while safeguarding its economic interests”.

She added: “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.”

Robert Habeck, the German Economy Minister said: “What counts now is to have a firm response to these tariffs from the EU. It needs to be clear that we will not take this lying down.”

He added: “The EU must now give a firm response to the tariffs – it must be clear that we will not back down in the face of the USA.”

The Canadian Prime Minister, Mark Carney said: “We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together.”

U.S. President Donald Trump then warned today that he will impose additional tariffs on the European Union and Canada if they collaborate to do economic harm against their ‘best friend’, the United States.