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Trump’s 25% auto tariff shook markets, hitting stocks and sparking fears of a global trade war.
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UAW backed the move, while Tesla and foreign automakers warned of higher costs and job risks.
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Japan, the EU, and South Korea threatened retaliation and emergency trade measures.
President Donald Trump finally announced 25% tariffs on auto imports on Wednesday, which he said would push automakers to expand production in the US.
Here’s what industry figures and politicians are saying about the decision.
UAW welcome
The United Auto Workers union praised the move it said would help reverse more than 30 years of free trade policies that had devastated the US auto industry.
“Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today’s actions,” UAW president Shawn Fain said in a statement.
The union expects the tariffs will push automakers, including the Big Three of GM, Ford and Stellantis as well as foreign companies such as Volkswagen, to invest more in the US and potentially create thousands of jobs.
The union argued that underutilized plants could quickly scale up production, reversing thousands of layoffs they attributed to the outsourcing to Mexico.
Tesla not untouched
While Tesla produces its cars in the US, CEO Elon Musk said on X the tariffs would still have a “significant” impact on his EV company meaning it was “not unscathed here.”
“To be clear, this will affect the price of parts in Tesla cars that come from other countries,” he posted on Wednesday, adding that the cost impact is “not trivial.”
The tariffs come as Tesla faces challenges including US registrations falling by 11% in January and European sales sliding 42% in January and February.
Japan considers options
Japan, the second-largest exporter of vehicles to the US after Mexico, warned of a strong response. Prime Minister Shigeru Ishiba said “every option” was under consideration, and his government called the tariffs “extremely regrettable” and a threat to bilateral relations.
South Korea’s industry minister, Ahn Duk-Geun, said Korean automakers faced “considerable difficulties” and would announce emergency measures.
European impact
European automakers also sounded the alarm. The European Automobile Manufacturers’ Association warned that tariffs would hurt both global automakers and US domestic manufacturing, as European manufacturers export 50% to 60% of the cars they make in the US.
“We urge President Trump to consider the negative impact of tariffs not only on global automakers but on US domestic manufacturing as well,” said the association’s director-general Sigrid de Vries in a statement sent to Business Insider.
European Commission President Ursula von der Leyen said she “deeply regretted” the US decision to impose tariffs, while UK finance minister Rachel Reeves said Britain would not escalate trade tensions.
Higher prices warning
While Honda produces most of its cars for the American market in the US, rivals including Toyota, Nissan, Hyundai/Kia, Volkswagen, and Stellantis rely heavily on imports, making them particularly exposed to the tariffs.
Autos Drive America, representing foreign automakers like Honda and Toyota, warned the tariffs would lead to higher car prices, fewer choices for consumers, and job losses.
“The tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and fewer manufacturing jobs in the US,” said Jennifer Safavian, the CEO of Autos Drive America.
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