US President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US, saying that the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Charges on parts are set to start in May or later. The White House said the order would apply not only to finished cars but also to car parts, which are often shipped in from other countries before getting assembled in the US.

White House claims this will boost domestic manufacturing but could strain automakers reliant on global supply chains. "This will continue to spur growth. We'll effectively be charging a 25% tariff," Trump told reporters. Expected to generate $100 billion annually, the tariffs could complicate operations even for US automakers, as many source parts globally. The tax hike may lead to higher costs and lower sales.

The US imported roughly eight million cars last year, accounting for about $240bn (£186bn) in trade and roughly half of overall sales. Many US car companies have operations in Mexico and Canada as well, set up under the terms of the longstanding free trade agreement between the three countries.

US and foreign automakers have plants around the world to accommodate global sales while maintaining competitive prices -- and it could take years for companies to design, build and open the new factories that Trump is promising. 

This would bring a huge strain on global car trade and global supply chains. Many foreign leaders were quick to express their regret and criticise the tariffs. 

Additionally, he has enforced a 25% tariff on all steel and aluminum imports, revoking earlier exemptions from his 2018 metal tariffs.

Further duties are planned on computer chips, pharmaceutical drugs, lumber, and copper.