ISLAMABAD (PEN) : Global leaders have strongly criticized U.S. President Donald Trump’s recent decision to impose a 25% tariff on foreign-made automobiles, warning that the move could provoke severe trade repercussions.
Canada Signals Strong Retaliation
Canadian Prime Minister Mark Carney expressed his displeasure with the tariffs, declaring that “nothing is off the table” when it comes to retaliating against the U.S. administration’s new trade measures. Carney highlighted the shift in Canada’s approach to its relationship with the United States, stressing that Canada would now diversify its trade relations and reduce its reliance on the U.S. market.
“The old relationship we had with the United States – based on deep integration of our economies and tight security and military cooperation – is over,” Carney said in a pointed statement. He emphasized that Canada would pursue new, more aggressive trade strategies, signaling the country’s intent to retaliate if necessary.
Mexico and European Union Also Criticize the Tariffs
The tariffs, which will come into effect on April 2, 2025, have also sparked backlash from Mexico and the European Union. Both regions have warned that they may take countermeasures, potentially escalating the ongoing trade tensions between the U.S. and its global partners.
German Chancellor Olaf Scholz added his voice to the criticism, calling the U.S. move a setback for global trade. “The U.S. has chosen a path whose end will be detrimental to everyone, as tariffs and isolation hurt prosperity globally,” Scholz remarked.
Potential Economic Fallout
Industry analysts have raised concerns over the potential economic fallout, especially within the U.S. automotive sector. Major automakers, such as General Motors (GM), Ford, and Stellantis, rely heavily on cross-border supply chains. Disruptions caused by these tariffs could severely affect production and costs, with GM shares already seeing a sharp decline following the announcement.
Flavio Volpe, head of Canada’s Automotive Parts Manufacturing Association, pointed out that nearly two million vehicles produced in Canada are sold in the U.S. He noted that half of the components in those vehicles come from the U.S., signaling the interdependence of the two nations’ automotive industries.
Trump Defends Tariffs, Union Support
Despite international criticism, President Trump has defended the tariffs, claiming they are necessary to protect American jobs and bolster domestic manufacturing. The United Auto Workers (UAW) union has praised the tariffs, viewing them as a step toward addressing long-standing issues in working-class communities.
UAW President Shawn Fain called the decision “a major step in the right direction” for blue-collar workers, urging U.S. automakers to bring back union jobs to the U.S.
Industry Experts Question Long-Term Benefits
However, experts have questioned whether the tariffs will deliver immediate benefits to U.S. workers. Industry observers have pointed out that the construction of new manufacturing plants could take several years, well beyond the duration of Trump’s presidency, raising doubts about the effectiveness of the move in the short term.
Al Jazeera’s Alan Fisher noted that while the tariffs may have long-term strategic goals, the immediate impact on U.S. workers will likely be minimal, as building new plants and facilities will require years of investment and construction.
The situation remains fluid, with continued uncertainty over how the international community will respond to the tariffs, and whether they will spark a broader trade war between the U.S. and its global partners.
