US President Donald Trump has announced a 25 percent tariff on imported cars, BNR reported. The measure will take effect on April 2, Trump said in a statement from the Oval Office.
"What we are going to do is impose a 25 percent tariff on cars that are not made in the United States. If they are made in the United States, there will be absolutely no tariffs. We start with a base of 2.5 percent and we go up to 25 percent. The automotive industry is very exciting to me because it will continue to grow like never before."
About 50 percent of the cars sold in the United States are made there. Of the imported cars, nearly half come from Canada and Mexico, and the rest from countries such as Japan, South Korea and Germany, according to Agence France-Presse.
Donald Trump also promised reciprocal tariffs "for everyone", although it is not clear when exactly they will come into effect.
Markets reacted to the news with a decline, with the technology index "Nasdaq" down two points. Shares of automaker "General Motors" also decreased by 3.1 percent.
European Commission President Ursula von der Leyen expressed regret at Trump's announcement and said the European Union would continue to seek negotiated solutions while protecting its economic interests.
Canadian Prime Minister Mark Carney said the auto tariffs were a direct attack on his country and vowed to protect Canadian companies and their employees.