Who Would Be Most Affected by Trump's 25% Tariff on Auto Imports?

On Wednesday, President Donald Trump announced a 25% tariff on auto imports, a move the White House argues will boost domestic manufacturing. However, this decision may financially strain automakers reliant on global supply chains. The tariffs, expected to generate $100 billion in annual revenue, could create challenges, as even U.S. automakers source components worldwide. Starting in April, the tax hike could lead to higher production costs and reduced sales, although Trump believes the tariffs will encourage more factories to open in the U.S. and eliminate what he calls the “ridiculous” supply chain involving the U.S., Canada, and Mexico.