BEIJING, March 27 (Xinhua) -- U.S. President Donald Trump has announced sweeping 25 percent tariffs on imported automobiles and certain automobile parts, a move that has sparked strong reactions from major trading partners and industry leaders worldwide.
The announcement has drawn immediate backlash from American auto dealers and industry analysts, who warn that the tariffs will significantly drive up car prices and hurt consumers already facing rising costs.
Cody Lusk, president and CEO of the American International Automobile Dealers Association, issued a statement cautioning that the tariffs would burden American families.
"For auto dealers and their customers, already reeling from rising vehicle and parts prices, as well as high interest rates and insurance costs, these new tariffs pose an additional and unwelcome challenge to affordability," Lusk said. "Tariffs can play an important role in balancing trade relationships and ensuring national security. But increasing barriers to trade also puts added pressure on the wallets of American families."
Industry experts echo these concerns. Kenneth Kim, senior economist at KPMG, estimated in a research note that new vehicle prices could increase by several thousand U.S. dollars, with some reaching hikes of 10,000 dollars or more.
John Murphy, senior vice president at the U.S. Chamber of Commerce, warned that the tariffs would harm rather than help the U.S. auto industry.
"The tariffs announced today will harm -- not help -- the U.S. auto industry, endanger many American jobs, and lead to a hollowing out of auto manufacturing in the United States," Murphy said.
Beyond the United States, global responses to the tariffs have been swift and firm. In Canada, Prime Minister Mark Carney condemned the measure, calling it "a direct attack" on Canadian workers. During his election campaign, Carney had vowed that his government would explore possible retaliatory measures.
Previously, Carney had announced a "strategic response fund" worth 2 billion Canadian dollars (1.4 billion U.S. dollars) to bolster domestic manufacturing and counteract the impact of the tariffs. He emphasized the need to strengthen Canada's auto sector by reducing reliance on cross-border supply chains.
Auto parts often cross the border multiple times, and the added costs of tariffs and counter-tariffs would quickly snowball. Carney called that a "huge vulnerability" and promised to build an "all-in-Canada" manufacturing network to build more car parts domestically, limiting how often they cross the border during production.
In Europe, the reaction was similarly critical. European Commission President Ursula von der Leyen expressed deep regret over the U.S. decision, emphasizing the importance of transatlantic trade.
"The automotive industry is a driver of innovation, competitiveness and high-quality jobs, with deeply integrated supply chains on both sides of the Atlantic," von der Leyen said in a statement. She added that tariffs "are bad for businesses, worse for consumers" in both the United States and the EU.
She added that the EU would assess the implications of the U.S. decision while continuing to seek negotiated solutions.
Germany's automotive industry issued a strong rebuke, with Hildegard Muller, president of the German Association of the Automotive Industry, warning that the tariffs would disrupt global supply chains and damage trade relations.
"These additional tariffs will not only impact European manufacturers but also have direct consequences for the U.S. economy itself. The fallout from such measures threatens growth and prosperity on both sides of the Atlantic," Muller stated, calling for immediate U.S.-EU negotiations to establish a fair trade agreement.
Britain has also raised concerns about the potential fallout. British Chancellor of the Exchequer Rachel Reeves warned that escalating trade tensions would harm both economies.
"Trade wars are no good for anyone. It will end up with higher prices for consumers, pushing up inflation after we've worked so hard to get a grip of inflation, and at the same time, will make it harder for British companies to export," Reeves told local media on Thursday. "We are looking to secure a better trading relationship with the United States," she added, noting that further discussions would take place later in the week.
British industry leaders echoed her concerns. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, described the tariffs as "disappointing" and urged the United States and Britain to seek a constructive resolution.
"Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic," Hawes said, emphasizing the importance of maintaining strong trade ties.
Japan, a key supplier of automobiles to the United States, is also bracing for economic repercussions. According to the Japan Research Institute, automobile production in the country is expected to decline by 4.3 percent annually due to reduced U.S. sales, while overall industrial production could drop by 0.6 percent as a result of the expanded tariffs.
Japanese Prime Minister Shigeru Ishiba stated that Japan would consider all options to counter the impact of the tariffs.
"We are strongly urging the United States not to apply the 25 percent tariff to Japan," Ishiba said, highlighting Japan's contributions to the U.S. economy through investment and job creation. He also questioned the fairness of applying a uniform tariff to all countries.
As the global backlash mounts, tensions between the United States and its key trading partners are intensifying, raising the stakes for future trade negotiations and economic stability. ■
