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Donald Trump has announced new trade taxes of 25% on cars being imported to the US.
The US President said the latest tariffs would come into effect on 2 April, with collections starting the next day.
Trump claimed the measure would lead to “tremendous growth” for the car industry, promising it would spur jobs and investment in the US.
But analysts have said the move is likely to cause major disruption in car production, increase prices, and strain relations with allies.
Mexico is the top foreign supplier of cars to the US, followed by South Korea, Japan, Canada and Germany.
Shares in General Motors slid roughly 3% on Wednesday, as the White House said it was planning the announcement.
Asked at a press conference if there was any chance he would reverse course, Trump said no.
“This is permanent,” he said, adding: “But if you build your car in the United States there is no tariff.”
BBC News
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