Pakistan, March 27 -- President Donald Trump has announced a 25% tariff on all foreign-made vehicles, effective April 3. The move aims to disrupt global auto trade, particularly affecting countries like Canada, Mexico, Japan, South Korea, and Germany. In addition, the tariffs will apply to key automotive parts, including engines, transmissions, and electrical systems, starting May 3.

The U.S. administration has introduced a partial exemption for vehicles and parts compliant with the U.S.-Mexico-Canada Agreement (USMCA). However, this exemption only applies to U.S.-produced content. For example, a truck built in Mexico with 45% U.S. content will still face the 25% tariff on the remaining 55% of its value. This complex rule has added uncer...