Trump's executive order on imposing 25% tariffs on imported cars sparks criticism, fury

US President Donald Trump signed an executive order on March 26 imposing a 25 percent tariff on all imported cars and certain auto parts effective from April 2.

The move is expected to generate over $100 billion in additional revenue annually, according to Trump. However, it has sent shockwaves through the global automotive supply chain and drawn strong opposition from traditional US allies such as Canada and the European Union, potentially triggering a new round of international trade disputes.

Canadian Prime Minister Mark Carney said the tariff would "deal a heavy blow to Canada." Ontario Premier Doug Ford added that Canada might take retaliatory measures to ensure an equivalent level of "pain" for the US. 

European Commission President Ursula von der Leyen expressed deep regret over Trump's decision, saying "Tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union." She added that the EU would assess the move, together with other measures the US is envisaging, in the next day, and will continue to seek negotiated solutions while safeguarding its economic interests. 

Brazilian President Luiz Inacio Lula da Silva, speaking in Japan about the US tariffs, said he's considering both a challenge in the WTO as well as the imposition of retaliatory tariffs on the US, though he did not specify details. Lula also expressed doubts over the benefits of tariffs, noting that they would lead to inflation and harm the US economy. He also voiced concern over the rise of protectionism in the global economy.

In the US, the United Auto Workers Union supports the policy, saying it will help protect American jobs. However, Autos Drive America, which represents international automakers, warned that the move would make already pandemic-inflated car prices even more unaffordable.

Jonathan Smoke, Chief Economist at Cox Automotive, pointed out that the tariff policy would severely disrupt North American auto production, potentially leading to supply shortages, higher prices, and a further weakening of the economy.

Overall, Trump's tariff policy has drawn widespread attention and controversy, with its impact on the US economy and the global automotive industry still to be seen.