U.S. President Donald Trump on Wednesday announced plans to impose 25-percent tariffs on all imported automobiles, with the measures set to take effect on April 2. The U.S. president argued that the tariffs would encourage more production to relocate to the United States, generate new revenue for the government, and help reduce the national debt.

Economists, however, have warned that tariffs would push up car prices, and hurt consumers, who already face elevated prices.