Trump announces tariffs on car imports of 25 percent

Heavy blow for German car manufacturers

Trump announces high tariffs on auto imports

US President Donald Trump has announced special tariffs for all auto imports in the USA. The German auto industry is likely to hit its measure.

US President Donald Trump has announced tariffs of 25 percent on car imports. The import customs are also due for central auto parts. “If you build your car in the United States, there is no customs,” said the Republican in the White House. The step further heats the trade conflict between the USA and the European Union. In particular, the German auto industry is likely to pose problems for punishment. Trump wants to strengthen the United States as a production location and reduce trade deficits.

“We will get part of the money back that we have been taken,” argued Trump, who has been complaining about the relief of trade for a long time. The step will ensure that automotive manufacturers are increasingly producing in the United States, the US President predicted and asserted: “I think our automotive industry will flourish than ever before.”

This is the beginning of the “day of liberation in America,” said Trump. He has been talking for weeks that the April 2 – on which he wants to announce a large -scale customs package – will become a “day of liberation” for the country. The auto-tariffs are only a foretaste of further special levies that Trump wants to present in the coming week.

EU Commission President Ursula von der Leyen continues to focus on discussions in view of the escalating trade conflict with the United States. The EU would strive for negotiation solutions and maintain its economic interests, she said. She also emphasized: “As a large trade power and strong community of 27 Member States, we will jointly protect our employees, companies and consumers throughout the European Union.”

The Leyen emphasized that the automotive industry was connected by deeply integrated supply chains on both sides of the Atlantic. It is a driving force for innovation, competitiveness and high -quality jobs. Customs are bad for companies and even worse for consumers – in the USA and the EU alike. “We will now evaluate this announcement together with other measures that the United States consider in the next few days.”

Other countries like Canada announced retaliation measures. The most important car manufacturers in the USA are General Motors, Ford and Stellantis, which together make up around half of the car production in the country. The United States also imports a significant part of motor vehicles, engines and other car parts.

Almost half of all vehicles sold in the USA are imported, as the “New York Times” reports, citing data from Wall Street consulting firm Bernstein. Almost 60 percent of the parts in vehicles that are mounted in the United States come from abroad.

The most important suppliers include Mexico, Japan, South Korea, Canada and Germany. Customs on vehicle imports are therefore likely to put a considerable burden on the German auto industry. Because the United States is its most important sales market, as the latest figures in the Federal Statistical Office show.

No other country took as many new cars from Germany as the USA: they were at the forefront of 13.1 percent of exports, followed by Great Britain (11.3 percent) and France (7.4 percent). According to the Association of the Automotive Industry, exports to the United States have increased to the previous year. Here you can read which car brands the new tariffs could hit.

However, the entire European Union is a thorn in the side of the Republican. The 78-year-old has repeatedly questioned EU tariffs from the USA in the past. While the United States only raises 2.5 percent inches on cars from the EU, the EU demands 10 percent on US auto imports.