Auto industry rocked by tariffs

Hefty levies stand to hit US consumers hard in pocket and hamper production

DETROIT/WASHINGTON — US automakers and their global rivals were rocked on Wednesday by US President Donald Trump's announcement that the US would impose tariffs of 25 percent on all vehicles and foreign-made auto parts imported into the United States.

The new levies, if kept for an extended period, could add thousands of dollars to the cost of an average US vehicle purchase and impede car production across North America.

That will be because of the intertwined manufacturing operations developed by carmakers across Canada, Mexico and the US over the past 30 years. The US imported $474 billion worth of automotive products last year. Five countries — Mexico, Japan, the Republic of Korea, Canada and Germany — supplied most US auto imports.