Germany’s economy minister has called for a “firm response” from the European Union after U.S. President Donald Trump announced a new 25% tariff on car imports.
The levy will come into effect on April 2 and will apply to foreign-made cars. A similar charge on imported car parts will be introduced in May or later.
Last year, the U.S. imported around eight million cars, with Mexico ranked as the top supplier, followed by South Korea, Japan, Canada and Germany.
Officials and representatives of the German automotive industry have slammed Trump’s move, which could prompt an escalated global trade war.
“The EU must now give a firm response to the tariffs—it must be clear that we will not back down in the face of the USA,” Germany’s economy minister, Robert Habeck, said.
Germany’s VDA car lobby called the new levies a “fatal signal” for free, rules-based trade, warning they would harm companies as well as global supply chains.
“The German automotive industry is calling for immediate negotiations between the U.S. and the EU on a bilateral agreement,” VDA President Hildegard Müller said.
Brussels said on Thursday that officials are preparing strong measures on behalf of the 27-country bloc.
Last year, the U.S. imported around eight million cars, with Mexico ranked as the top supplier, followed by South Korea, Japan, Canada and Germany.
Officials and representatives of the German automotive industry have slammed Trump’s move, which could prompt an escalated global trade war.
“The EU must now give a firm response to the tariffs—it must be clear that we will not back down in the face of the USA,” Germany’s economy minister, Robert Habeck, said.
Germany’s VDA car lobby called the new levies a “fatal signal” for free, rules-based trade, warning they would harm companies as well as global supply chains.
“The German automotive industry is calling for immediate negotiations between the U.S. and the EU on a bilateral agreement,” VDA President Hildegard Müller said.
Brussels said on Thursday that officials are preparing strong measures on behalf of the 27-country bloc.
A European Commission spokesperson told reporters that Brussels is looking at potential responses to both the car import levy and previously announced U.S. “reciprocal tariffs,” which are also set to come into force next week.
“I can't tell you exact timings for when our potential response to these still-not-implemented actions will come, but I can assure you that it will be timely, that it will be robust, that it will be well-calibrated and that it will achieve the intended impact,” the spokesperson said.
With the tariffs set to impact many long-standing trade partnerships, Trump said while signing the executive order on Wednesday that “friend has been oftentimes much worse than foe.”
“I can't tell you exact timings for when our potential response to these still-not-implemented actions will come, but I can assure you that it will be timely, that it will be robust, that it will be well-calibrated and that it will achieve the intended impact,” the spokesperson said.
Trump seeks ‘tremendous growth’
With the tariffs set to impact many long-standing trade partnerships, Trump said while signing the executive order on Wednesday that “friend has been oftentimes much worse than foe.”
According to the president, the new tariff will spur “tremendous growth.” He added that he had already contacted the U.S.’s Big Three car manufacturers, Stellantis, Ford and General Motors.
While Trump hopes to rake in $100 billion with the tariff, analysts have warned that the move will spark a rise in prices, temporarily slow down domestic production, strain international relations and disrupt global supply chains.
Canada’s prime minister, Mark Carney, has called Trump’s proclamation “a direct attack” on his country, which could be heavily impacted by the measures.
Trump has already said he would impose “far larger” tariffs if the EU and Canada joined forces to economically “harm” the U.S.
While Poland is not a significant producer of exported cars, it does manufacture a large number of car parts and accessories. Last year, the value of car parts exported by Poland was $311 million.
While Trump hopes to rake in $100 billion with the tariff, analysts have warned that the move will spark a rise in prices, temporarily slow down domestic production, strain international relations and disrupt global supply chains.
Canada’s prime minister, Mark Carney, has called Trump’s proclamation “a direct attack” on his country, which could be heavily impacted by the measures.
Trump has already said he would impose “far larger” tariffs if the EU and Canada joined forces to economically “harm” the U.S.
While Poland is not a significant producer of exported cars, it does manufacture a large number of car parts and accessories. Last year, the value of car parts exported by Poland was $311 million.
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