President Donald Trump’s latest salvo in the global trade war - slapping a 25% tariff on imported cars and auto parts - has shifted the gears of international economics, igniting fresh tensions with allies and sending shockwaves through the global automotive supply chain. Rabobank’s latest economic analysis warns the repercussions could be more far-reaching than they first appear, from dealer showrooms in Detroit to factories in Germany, Mexico, and Japan.

The executive order, signed March 26 and going into effect April 3, targets more than $325 billion in annual imports. While past tariff measures focused on consumer goods and basic materials, this decision revs directly into one of the most globalized and high-value industries - automobiles. The move, touted by the administration as a matter of national security, echoes past protectionist measures and reasserts Trump’s broader “Grand Macro Strategy”: reindustrialize America to counter Chinese economic power.