The sharp increase in import tariffs could reshape the auto industry, impact trade relations, and drive up car prices.

President Donald Trump has announced a major shift in U.S. trade policy, raising tariffs on imported automobiles from 2.5% to 25%.

The new tariffs, set to take effect on April 2, align with his broader strategy of imposing reciprocal trade measures to support American industries.

The White House says the move aims to revitalize domestic auto manufacturing, creating jobs and reducing reliance on foreign-made vehicles.

Trump believes this policy will encourage automakers to expand operations within the U.S., rather than outsourcing production to countries like Mexico, Japan, and Germany.

However, economists warn that these tariffs could also increase costs for both automakers and consumers.

With the U.S. importing $474 billion in automotive products last year, higher tariffs may lead to rising vehicle prices, making cars more expensive for American buyers.

Trade partners, including Canada, South Korea, and the European Union, are closely watching the situation, with potential retaliatory tariffs on U.S. exports looming.

Meanwhile, U.S. automakers must navigate the challenges of supply chain disruptions and potential profit margin squeezes.

Glen Lundy, the Founder of 800% Elite Automotive Club joins Veronica Dudo to discuss.