March 31, 2025, 6:58 p.m.

Business

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The United States announced a 25% tariff on imported cars, which has attracted wide attention

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Recently, US President Donald Trump signed an executive order at the White House, announcing a steep 25% tariff on all imported cars, and stressed that the policy will be permanent. The decision has sparked widespread concern in the international community and the global automotive industry, with many expressing concern about the possible negative impact of the policy.

In his statement, Trump said that any car produced in the United States would not be subject to tariffs, in an attempt to entice automakers to move production to the United States. However, most of the world's major automakers have complex and highly globalized supply chains, and a sudden increase in tariffs on imported vehicles could not only exacerbate international trade tensions, but also harm U.S. consumers and could even trigger other countries to take countermeasures against U.S. exports.

Several companies said the U.S. market's high dependence on imported cars made the policy likely to drive up car prices and ultimately increase the cost of buying cars for consumers. In addition, the production costs of the domestic automobile manufacturing industry are higher, and if companies are forced to relocate production lines, it may lead to higher final selling prices and weaken market competitiveness.

It is worth noting that US companies themselves could be affected. Many multinational automakers with factories in the United States, such as Hyundai Motor, Honda and BMW, have production chains that involve a large number of imported parts, and if import tariffs are raised, their production costs will increase significantly, thus affecting the profitability of the overall industry.

In his statement, Mr. Trump noted that Elon Musk, the chief executive of the American electric car maker Tesla, had not made any recommendations on the policy or asked for any special treatment from it. The statement raised questions, with some analysts suggesting that Tesla, as a U.S. manufacturer, could benefit from the tariffs because its products are mostly made and sold in the United States.

In addition to autos, Trump also revealed that the U.S. government will impose tariffs on wood and drugs, but specific details have not been released. This move may also affect the global trade pattern, especially in the pharmaceutical industry, the United States is highly dependent on imported drugs and raw materials, higher tariffs may lead to drug prices, which will affect the domestic healthcare system and the burden of drugs for patients, and the timber industry is also facing similar challenges, the construction industry and furniture manufacturing industry in the United States are dependent on imported wood. Higher tariffs could push up costs, further adding to the economic pressure on consumers.

This series of protectionist measures by the United States may trigger retaliatory tariffs by other countries, which will trigger a new round of trade wars. Previously, the tough stance of the United States on trade policy has led to the dissatisfaction of several Allies, and major economies in Europe, Asia and North America may take corresponding countermeasures to protect their own industries.

The Trump administration's decision reflects the United States' unilateralist approach to global economic policy, and in the long run, such protectionist measures may instead hurt the US economy itself, lead to retaliatory measures from trading partners, and ultimately impose higher living costs on US consumers.

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