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March 27 (Reuters) - U.S. President Donald Trump said

late on Wednesday the United States will effectively charge a

25% tariff on all cars not made in the country and that the new

duties on cars and light trucks imported into the United States

will be permanent.

Shares of General Motors ( GM ) and Ford fell in

extended trade after Trump's announcement. Auto shares slid in

South Korea and Japan, wiping out roughly $16.5 billion from

transport stocks in Tokyo, according to LSEG data.

Europe was braced to sell with the euro at

three-week lows and German DAX futures down 0.8%.

KYLE RODDA, SENIOR FINANCIAL MARKET ANALYST, CAPITAL.COM,

MELBOURNE

"There are a lot of layers here. However, I think the big

concern is that not only will these tariffs be disruptive and

economically harmful, but it indicates that the Trump

administration's shake-up of global trade won't necessarily end

with next week's April 2nd announcement of reciprocal tariffs,

as previously hoped. This potentially drags out trade

uncertainty even longer and raises the question of how radical a

change to the global trade order is Trump trying to bring

about."

JASON CHAN, SENIOR INVESTMENT STRATEGIST, BANK OF EAST ASIA,

HONG KONG

"Trump's auto tariff probably has a bigger impact on the

EU compared with Chinese carmakers. The levies on Chinese autos

have been hiked up already, and they have relatively limited

exposure to the U.S. market anyway. Also, his comments about the

TikTok deal are giving people hope that there's room for

negotiations.

"It now looks like he's more aggressive toward other markets

instead of focusing all his efforts on China, so that could

somehow help cushion the sentiment for China and Hong Kong."

SHANE OLIVER, CHIEF ECONOMIST AT AMP, SYDNEY

"It is sort of anticipated. It is just a question of the

timing... so maybe the market has sort of factored it in. The

other aspect is investors assume he may backtrack a little bit,

maybe that's why the market has become a little less responsive.

"With sentiment being so much more negative now, it's hard

for negative news to have a big impact than it was several

months ago."

VASU MENON, MANAGING DIRECTOR, INVESTMENT STRATEGY, OCBC,

SINGAPORE

"The auto tariffs represent a significant expansion of

Trump's trade war. It also risks disrupting operations for U.S.

automakers, which are highly integrated to supply chains in

Mexico and Canada.

"Trump's latest actions will probably make cars more

expensive for U.S. consumers already worried about inflation and

could amplify recession worries. The tariffs may not only raise

the prices of foreign-made cars in the U.S., even U.S.-made cars

could see price increases if supplies and parts are affected by

the levies.

"Retaliation from countries that have been affected by the

latest auto tariffs could worsen the situation for U.S.

consumers and automakers and fuel further concerns about

inflation and the outlook for the U.S. economy."

CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT

SERVICES, HAMMOND, INDIANA

"I've been kind of suspect on all the tariff talks in terms

of what is going to last, what is a negotiation, what is going

to be pulled at the last minute. My initial reaction was this

tariff might have some legs."

"There's probably going to be some exemptions or

modifications for some of the U.S. automakers... I could see the

U.S. automakers getting some exemptions based on their supply

chains. But I think he may want to see how this works out as

opposed to stopping it in two or three days. That's my initial

reaction, that this particular tariff might have legs in terms

of its longevity."

PRASHANT NEWNAHA, SENIOR ASIA-PACIFIC RATES STRATEGIST, TD

SECURITIES, SINGAPORE

"These auto tariffs are likely on top of other tariffs on

steel, aluminum, copper and the impending reciprocal tariffs to

be announced on 2nd April. It's hard not to interpret this as

anything but a cue for higher prices and lower growth with a

soft landing becoming more complicated. Countries most exposed

to the new auto tariffs are Slovakia, Mexico, South Korea and

Japan. Keep an eye on stocks of car makers, the Korean won and

Mexican peso."

(Reporting by the Global Finance & Markets Breaking News team;

Compiled by Vidya Ranganathan

Editing by Jamie Freed and Lincoln Feast.)