The global auto industry reacts to the threat of more US tariffs.

Live from the BBC World Service, this is the Marketplace Morning Report.

I'm Luke Wilson in for Leanna Byrne. Good morning.

The global auto industry has been rocked by sweeping 25% tariffs on all imports of cars and car parts from the United States. They'll come into

effect on Wednesday, with charges on businesses importing vehicles starting the next day. Taxes

on parts are set to start in May or later. The US imported about 8 million cars last year,

accounting for around $240 billion in trade and roughly half of all

auto sales. Here's the BBC's Nick Marsh. Many of the world's top car exporters had still

hoped for an exemption from these tariffs, but they've been disappointed. And unsurprisingly,

the criticism has been heavy. Canada's new Prime Minister Mark Carney called them an attack on Canadian workers

that fundamentally threatens his country's historically close ties with the US.

The EU's Commissioner, Ursula Vandalean, said that tariffs are taxes

that are bad for businesses and worse for consumers.

Meanwhile, Japan's Prime Minister said that his country

is still hoping for a future exemption, given that Japan is the world's largest foreign investor

in the United States. Ahead of the tariffs this week, South Korea's top carmaker Hyundai

announced a $21 billion investment in US-based manufacturing, a move which was enthusiastically welcomed by Donald Trump.

Nick Marsh there. John Neal is founder of the Unipark Group, which is a global logistics and supply chain consultancy.

He says this will backfire on the United States.

I think these things have unintended consequences. This will be a gift to the Chinese

car industry as consumers around the world retaliate. Whatever governments do, the auto industry

around the world employs millions of people who are going to retaliate against American products.

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