Trump's 25% Tariff on Foreign Cars Sparks Concerns

President Donald Trump's new tariffs, including a 25% levy on foreign-made cars, are expected to significantly raise vehicle prices and monthly car payments, exacerbating the financial strain on American consumers already facing high auto debt and interest rates. Economists warn that these tariffs, part of Trump's broader 'Liberation Day' trade policy, could lead to increased inflation and potentially trigger a recession, as retaliation from major trade partners like the EU and China looms. Treasury Secretary Scott Bessent has advised against retaliation to avoid further escalation, though international markets have already reacted negatively, with significant drops in major indices. The tariffs have sparked criticism from various global leaders, including Australia's PM, who described them as detrimental to international relations and beneficial to China. The situation remains tense as countries weigh their responses, and the potential for negotiation is uncertain.