US President Trump imposes tax of 25% on car imports

Kathmandu: US President Donald Trump has declared new import taxes of 25% on cars and their accessories. The move has been analyzed as a threat to widen the global trade war.

The BBC cited US President Trump as saying the latest tariffs would be implemented in April. The charges on businesses importing vehicles will start the next day, and charges on parts are set to start in May or later.

The president claimed the measure would lead to “tremendous growth” for the car industry, promising it would spur jobs and investment in the US.

However, Analysts said the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies.

The US imported roughly eight million cars last year, accounting for about $240 billion (£186 billion) in trade and roughly half of overall sales.