On March 27, 2025, President Trump announced a 25% tariff on all imported vehicles and foreign-made auto parts, effective April 3, aiming to boost U.S. manufacturing. The move sparked global outrage, with foreign leaders like Japan’s Shigeru Ishiba and Canada’s Mark Carney threatening retaliation, while the EU’s Ursula von der Leyen sought dialogue. Auto stocks plummeted—GM fell 7%, Ford 4.6%, and Stellantis 4%—as Asian automakers like Toyota and Honda also took hits. Experts predict car prices could rise by $4,000 to $12,000, impacting models like the Audi Q5 and Ford Maverick. Trump’s policy, a precursor to his April 2 “Liberation Day” duties, offers a temporary USMCA exemption but has already roiled markets, fueling economic uncertainty. Critics warn of job losses and higher consumer costs, while Trump insists the tariffs will bring auto jobs back to the U.S.