U.S. President Donald Trump on Wednesday signed an executive order to impose 25 per cent tariffs on all automobile imports to the United States next week but the deep integration of the North American industry means vehicles coming from Canada could face a lower rate.

The tax increase, scheduled to be implemented on April 2 with collection starting on April 3, may result in higher costs for automakers and a decline in sales.

Washington: US President Donald Trump on Wednesday said he was placing 25 per cent tariffs on auto imports, a move the White House claims would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains.