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Automakers and countries most vulnerable to US auto tariff increase

^{Published on 2025-03-27 03:41:33 - Reuters}

U.S. President Donald Trump on Wednesday followed through on weeks of threats for new tariffs on imported cars, saying a 25% import tax on vehicles not built in the U.S. would kick in next week.

The article from Reuters discusses the potential impact of increased U.S. auto tariffs on various automakers and countries. If the U.S. raises tariffs on imported vehicles, it could significantly affect global automotive trade. Countries like Mexico, Japan, and South Korea, along with European manufacturers, are particularly vulnerable due to their substantial exports to the U.S. market. The article highlights that the European Union, which has been in a trade dispute with the U.S. over auto tariffs, could face retaliatory measures. Additionally, companies like Toyota, Honda, and Hyundai, which have significant production in the U.S., might still be impacted due to their reliance on parts imported from their home countries. The potential tariff increase stems from a review of the Section 232 investigation into whether auto imports threaten U.S. national security, with a decision expected by mid-2025. This situation could lead to higher costs for consumers, shifts in production strategies, and potential trade negotiations or retaliations.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/automakers-countries-most-vulnerable-us-auto-tariff-increase-2025-03-27/ ]

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