US President Donald Trump has announced a new 25% tariff on all imported cars.
Signing an executive order, Mr Trump said the tariffs would kick in on 2 April – what he has called “liberation day”.
This is when all his retaliatory import tariffs take effect.
Speaking late on Wednesday, Mr Trump said: “This will continue to spur growth. We’ll effectively be charging a 25% tariff.”
However, the tariffs could be complicated as even American car makers source components from around the world – meaning they could also face higher costs and lower sales.
During his second term, Mr Trump has used tariffs frequently as a trade weapon with allies and enemies alike.
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