Luke Vargas

Right. We saw an estimate from Capital Economics yesterday saying that the tariffs will raise a maximum of $835 billion via customs duties. But we do have to consider how they could also trigger a decline in imports, which might offset that.

Right. We saw an estimate from Capital Economics yesterday saying that the tariffs will raise a maximum of $835 billion via customs duties. But we do have to consider how they could also trigger a decline in imports, which might offset that.

Deb, we are now beginning to hear from world leaders reacting to all of this from the likes of the Australian Prime Minister Anthony Albanese, who was pledging to fight back.

Deb, we are now beginning to hear from world leaders reacting to all of this from the likes of the Australian Prime Minister Anthony Albanese, who was pledging to fight back.

Notably, the president of the European Commission, Ursula von der Leyen, said she actually agreed with Trump that there are people taking advantage unfairly of current trade rules. And she said she was willing to try to remake the global trading system, though she didn't think tariffs were the way to do that.

Notably, the president of the European Commission, Ursula von der Leyen, said she actually agreed with Trump that there are people taking advantage unfairly of current trade rules. And she said she was willing to try to remake the global trading system, though she didn't think tariffs were the way to do that.

David, it almost seems like we're hearing in real time the wheels turning for world leaders trying to kind of reason out how much room they have to actually negotiate with the U.S. here or just kind of submit to a new reality. What are you hearing?

David, it almost seems like we're hearing in real time the wheels turning for world leaders trying to kind of reason out how much room they have to actually negotiate with the U.S. here or just kind of submit to a new reality. What are you hearing?

Alex, looking at the market response we're seeing this morning, what does that tell us about where negotiations might be possible with the U.S. or which companies, which supply chains, business models are likely to be affected maybe irrevocably?

Alex, looking at the market response we're seeing this morning, what does that tell us about where negotiations might be possible with the U.S. or which companies, which supply chains, business models are likely to be affected maybe irrevocably?

Debra Ball is the journal's Asia editor, and Alex Frangos is our finance editor for Europe. Deb, Alex, thank you both so much. Thanks very much.

Debra Ball is the journal's Asia editor, and Alex Frangos is our finance editor for Europe. Deb, Alex, thank you both so much. Thanks very much.

Coming up, new U.S. tariffs on car imports came into force at midnight. We'll talk to the Council on Foreign Relations' Brad Setzer about what that means for the U.S. auto industry and Americans looking to buy a car after the break. Effective today, the U.S.

Coming up, new U.S. tariffs on car imports came into force at midnight. We'll talk to the Council on Foreign Relations' Brad Setzer about what that means for the U.S. auto industry and Americans looking to buy a car after the break. Effective today, the U.S.

will begin collecting 25 percent tariffs on imports of finished automobiles and automotive parts, a trade move that's thrust auto exporting countries into crisis mode. And given that almost half of new cars sold in the U.S. last year were assembled beyond America's borders, according to S&P Global Mobility, U.S. consumers could be in for a shock as well.

will begin collecting 25 percent tariffs on imports of finished automobiles and automotive parts, a trade move that's thrust auto exporting countries into crisis mode. And given that almost half of new cars sold in the U.S. last year were assembled beyond America's borders, according to S&P Global Mobility, U.S. consumers could be in for a shock as well.

Well, here to help put these tariffs into context, I'm joined by Brad Setzer, a senior fellow at the Council on Foreign Relations, where he's an expert in global trade and capital flows. Brad, it was one thing to discuss these tariffs when they were a mere possibility. Now they are very much a reality. What is that likely to mean, starting foremost with American car manufacturers for Detroit?

Well, here to help put these tariffs into context, I'm joined by Brad Setzer, a senior fellow at the Council on Foreign Relations, where he's an expert in global trade and capital flows. Brad, it was one thing to discuss these tariffs when they were a mere possibility. Now they are very much a reality. What is that likely to mean, starting foremost with American car manufacturers for Detroit?

are some quite substantial potential ramifications of this just within the American auto market. But as we look globally, what are some trends we should be expecting?

are some quite substantial potential ramifications of this just within the American auto market. But as we look globally, what are some trends we should be expecting?