Economics

Summary

Trump announced a 25% tariff on all imported cars, escalating the global trade war and risking higher car prices for U.S. consumers.

The move follows earlier auto tariffs on Mexico and Canada, which were delayed. The new tariffs could impact over a million U.S. auto industry jobs and disrupt supply chains.

Stock markets reacted negatively, with the Dow falling 130 points and Tesla dropping 5.5%.

Retaliatory tariffs from China, the EU, and Canada have already sparked inflation concerns, with Fed Chair Jerome Powell blaming tariffs for recent price hikes.