India, March 27 -- President Donald Trump on Wednesday announced a 25 per cent tariff on auto imports, saying it would boost domestic manufacturing and generate $100 billion annually.

"This will continue to spur growth. We will effectively be charging a 25 per cent tariff," Donald Trump told reporters.With the tariff taking effect from April 3, automakers could face rising costs and lower sales. However, Trump expects the move to drive factory openings in the United States and eliminate what he calls a "ridiculous" supply chain spanning the United States, Canada, and Mexico. Emphasising his stance, he said, "This is permanent."

Trump has consistently maintained that auto import tariffs are a key policy of his presidency, expecting the a...