Cyprus News Agency

President Trump stated that the tariffs will lead to significant growth in the U.S. automotive industry and will result in increased investment and job creation. “What we’re doing is imposing a 25% tariff on all vehicles that are not manufactured in the U.S. If they’re made in the U.S., no tariff will be applied,” he said.

Strict regulations will also be introduced to prevent companies from producing most of their vehicles abroad and merely finishing them domestically to avoid tariffs.

Canadian Prime Minister Mark Carney reacted angrily to Trump’s statement, calling it a direct attack on Canada. Shortly after Trump’s tariff announcement, Carney said, “We will defend our workers, our businesses, and our country.”

The United States imported about eight million cars last year, worth approximately $240 billion. Most of the vehicles sold in the U.S. come from Mexico, followed by South Korea, Japan, Canada, and Germany.

South Korean automaker Hyundai announced shortly before Trump’s statement that it plans to invest $21 billion in a steel plant in the state of Louisiana. Trump said this was proof that his import tariff policy is working.

However, economists warned that the tariffs could lead to unforeseen consequences and paralyze global car production.