Dhaka, April 1 -- Raise prices or cut into their margins, open or close factories: carmakers must soon make major decisions as the United States imposes stiff tariffs on imported vehicles.

The 25-per cent tariffs that the administration of President Donald Trump is imposing as of April 3 will apply to cars and car parts not manufactured in the United States.

But all carmakers will be impacted, as even US automakers import foreign parts and manufacture vehicles for the US market in neighbouring Canada and Mexico.

The Bank of America estimates that the tariffs will apply to 7.3 million vehicles, or eight percent of global sales, and will expose carmakers to added costs and chaos.

Taking stock

One, albeit temporary, strategy to cope wit...