The global automotive industry remains in Donald Trump’s crosshairs following the implementation of a blanket 25% import tariff implemented on April 3.

On Wednesday the US President announced a 90-day pause for most of the country-specific tariffs that had been announced on ‘Liberation Day’ last week, but this does not apply to sectors such as the auto industry.

These levies have thrown international vehicle supply chains into turmoil, further burdening traditional carmakers who are already grappling with an uneasy transition to electric vehicles and increased competition from Chinese manufacturers.

The Detroit Regional Chamber has warned of dire consequences for the sector, Reuters reported.

"Michigan's signature industry and the supply chains and employees that sustain it will continue to endure the uncertainty and disruption of these fluctuating trade policies," the organisation said.

Trump also said on Wednesday that some US firms may be granted exemptions from tariffs, but at this stage, it’s not clear if any carmakers will be among these.

Volkswagen said on Wednesday that the US tariffs had dragged down its first quarter operating profit, which fell by 39% to 2.8 billion euros (R59 billion).

The US is one of the top destinations for German vehicle exports.

South Korea, also a large exporter to the US through its Hyundai and Kia brands, said Trump’s 25% tariffs would be a “significant blow”.

The country on Wednesday announced a $2 billion (R38.6 billion) emergency support package for its auto industry, AFP reported. Its government pledged to take “flexible action depending on the level of industry damage going forward."

UK Prime Minister Keir Starmer has also announced measures to the British auto industry from the storm, although this will involve loosened electric vehicle targets.

"In the coming days and weeks, we're going to use industrial policy to shelter British business from the storm," he said.

This came as Jaguar Land Rover announced last weekend that it would pause shipments to the US in April as it addressed the new trading terms.

In South Africa, Naamsa | The Automotive Business Council has warned that the US tariffs could have serious implications for the local vehicle manufacturing industry, placing jobs in peril.

The US currently accounts for about 6.5% of SA vehicle exports, making it the sector’s third-largest destination. However, of the country’s seven volume manufacturers, only BMW and Mercedes export to the US.

"The SA auto industry contributes significantly to economic development, employment, and industrialisation, and these tariffs could undermine our progress,” Naamsa CEO Mikel Mabasa said.

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