On March 26th local time, US President Trump signed a statement at the White House announcing a 25% tariff on imported cars, which will take effect on April 2nd. Trump also stated that car tariffs will be permanent, and if cars are manufactured in the United States, there will be no need to pay tariffs. The White House released a document on the same day showing that the tariffs imposed this time are based on Section 232 of the 1962 Trade Expansion Act of the United States, involving imported cars and some parts, aimed at protecting the "national security" of the United States.
Once the news was announced, the US stock market immediately fell. On March 26th, the three major US stock indexes collectively closed down, with the Nasdaq falling 372.85 points, or 2.04%; The S&P 500 index fell 1.12%; The Dow Jones Industrial Average fell 0.31%. The US auto sector index fell 0.86%, with General Motors falling more than 7%, Ford falling more than 4%, Tesla falling more than 5%, and Ferrari falling more than 4% after trading.
Faced with this measure by the United States, many countries quickly responded. Brazilian President Lula made it clear in an interview in Tokyo on March 27th that Brazil will not "sit idly by" in response to Trump's tariff measures and will adopt a favorable approach for Brazil. According to Caixin News Agency, Lula plans to impose retaliatory tariffs on the United States, but specific details have not been disclosed. Lula also pointed out that the imposition of tariffs will make American cars more expensive. Such tariffs not only lead to inflation, but also are bad for the United States. He also expressed concern about signs of protectionism in the global economy.
On the Canadian side, Prime Minister Carney strongly criticized at a press conference held in Ontario on the 26th, stating that the tariffs were a "direct attack" on Canadian workers and violated the "US Mexico Canada Agreement". Carney announced that Canada will study countermeasures, including the possibility of retaliatory tariffs, and will hold a cabinet meeting on the 27th to discuss trade options. In addition, Canada plans to establish a $2 billion automotive "strategic response fund" to protect its domestic automotive industry.
Von der Leyen, the president of the European Commission, also posted on the social platform X on the 26th, expressing regret about the increase of automobile tariffs in the United States, saying that this measure "will have a negative impact on enterprises in the United States and the European Union, and even more adverse on consumers". Von der Leyen said that the EU will continue to seek a negotiated solution while safeguarding its economic interests.
In addition, Japanese Prime Minister Shigeru Ishiba stated in parliament on March 27th that the Japanese government does not rule out the possibility of taking countermeasures against the car tariffs announced by the United States, and reiterated that the Japanese government is "strongly" demanding that Japanese cars obtain tariff exemptions.
Gary Hufbauer, a senior researcher at the Peterson Institute for International Economics in the United States, pointed out that the rising cost of automobiles due to tariffs will suppress demand, especially in the context of weak consumer financial conditions. It is expected that the US automotive and parts industry will experience "large-scale layoffs". Adam Krizafuli, head of Vital Knowledge, a US research firm, warned that the policy would lead to "severe disruptions to the economy for several quarters," with the dual pressure of slowing growth and rising inflation potentially dragging down the US economic growth rate to 1.7% in 2025.
(Editer：admin)
