In addition to Japan and South Korea, Europe is a major exporter of cars to the US. Car makers like Volkswagen are particularly affected, as car parts will be included in the tariffs. Furthermore, Mexico, where many manufacturers have invested in the US market, is also subject to steeper tariffs.

The Trump administration is imposing a 25% tariff on imported cars and parts starting April 3. The goal is to boost manufacturing in the auto industry in the United States. Nearly half of all vehicles currently sold in the U.

The measure is intended to bring car factories to the United States but could increase prices for consumers significantly. The president said the tariffs will start next week.

The 25% tariffs will be applied to imported passenger vehicles, including cars, SUVs, minivans, cargo vans and light trucks, according to a White House fact sheet released after Trump's Oval Office remarks. The tariffs will also be applied to key imported auto parts, including engines, powertrain parts and electrical components.

U.S. President Donald Trump on Wednesday turned his earlier threat into action by signing an executive order imposing 25 percent tariffs on all imported vehicles. The move has sparked a wave of criticism across Europe,

Car buyers looking to snag new wheels will likely be confronted with sticker shock after President Trump’s 25% tax on imported vehicles and auto parts kicks in. Trump’s tariff on cars and light trucks is set to take effect on April 3 while tariffs on certain auto parts, including engines and transmissions, will take effect no later than May 3.

The new 25 per cent import tax announced by President Donald Trump on Wednesday “will hurt global automakers and US manufacturing at the same time," the European Automobile Manufacturers' association said in a statement.

Foreign leaders were quick to criticize the tariffs, a sign that Trump could be intensifying a broader trade war that could damage growth worldwide.