Europe reacts strongly to Trump's 25% tariffs on cars
U.S. President Donald Trump followed through on his previous threat by signing an executive order on Wednesday that imposes a 25 percent tariff on all imported vehicles.
TroibNews 
U.S. President Donald Trump took action on Wednesday by signing an executive order that imposes 25 percent tariffs on all imported vehicles, following his earlier threat.
This decision has ignited significant criticism throughout Europe, with political leaders, experts, and representatives from the automotive industry calling for countermeasures. They have also advocated for the strengthening of trade relationships with other partners to mitigate the effects of the increasing tariffs.
Hildegard Mueller, president of the German Association of the Automotive Industry, emphasized the importance of the transatlantic partnership and free trade as essential components of prosperity for both Europe and the United States. She described Trump’s decision as "a disastrous signal for free and rules-based trade."
Mueller's comments reflect the broader discontent and escalating tensions in transatlantic relations, which were further intensified by Europe’s strong backlash on Thursday.
Effective April 2, the previously low tariffs on car imports between the two allies will no longer be in place, leading to a significant increase in rates. This action follows Trump’s assertion that the European Union’s trade surplus with the United States, particularly in the automotive sector, is excessive.
French President Emmanuel Macron criticized the additional tariffs, deeming them both economically and geopolitically misguided. He also raised concerns about the timing of the tariffs, noting the irony that some of the U.S.’s oldest allies are the first to be targeted. "There is a kind of paradox in seeing the United States' main allies being the first to be taxed," he stated.
Jose Lopez-Tafall, director general of the Spanish Association of Automobile and Truck Manufacturers, described the tariffs as "clearly negative," warning that they could lead to "an economic confrontation" between the two sides.
Sonali Chowdhry, a trade expert at the German Institute for Economic Research, remarked that the new U.S. administration is adopting an increasingly confrontational approach towards its trading partners. She highlighted that the auto tariffs target a highly globalized industry and are likely to disrupt intricate international supply chains.
The Czech Automotive Industry Association also expressed "serious concern" regarding the potential impact of the duties on European manufacturers and suppliers, cautioning that the tariffs jeopardize their global competitiveness.
Experts generally concur that the rising tariffs will result in economic harm for both Europe and the United States. The anticipated increase in costs is expected to directly affect U.S. consumers, exacerbating inflation while suppressing European exports and potentially resulting in job losses across the continent. Furthermore, many vehicles produced in the U.S. rely heavily on components sourced from Europe.
"A trade war has no winners," stated Dirk Jandura, president of the Federation of German Wholesale, Foreign Trade and Services. The organization had previously predicted a 2.7 percent decline in German foreign trade by 2025, but Jandura noted that this forecast will need to be significantly revised downward.
In the U.S. car market, the tariffs could add thousands of dollars to the cost of an average vehicle, contradicting Trump’s campaign promise to reduce consumer prices. Ferrari announced price increases of up to 10 percent for cars sold in the U.S., with other automakers also indicating potential price hikes.
American industry analysts have noted that Tesla, the electric vehicle manufacturer led by Trump administration advisor Elon Musk, may be better positioned than others since it produces all the cars it sells in the U.S. within Texas and California.
However, Musk stated on Wednesday via X that Tesla is not immune to the tariffs. "Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant," he wrote.
Despite this, auto industry analyst Daniel Ives from Wedbush Securities told NPR, "Tesla is the one least impacted" among U.S. carmakers.
Frederick R Cook for TROIB News
This decision has ignited significant criticism throughout Europe, with political leaders, experts, and representatives from the automotive industry calling for countermeasures. They have also advocated for the strengthening of trade relationships with other partners to mitigate the effects of the increasing tariffs.
Hildegard Mueller, president of the German Association of the Automotive Industry, emphasized the importance of the transatlantic partnership and free trade as essential components of prosperity for both Europe and the United States. She described Trump’s decision as "a disastrous signal for free and rules-based trade."
Mueller's comments reflect the broader discontent and escalating tensions in transatlantic relations, which were further intensified by Europe’s strong backlash on Thursday.
Effective April 2, the previously low tariffs on car imports between the two allies will no longer be in place, leading to a significant increase in rates. This action follows Trump’s assertion that the European Union’s trade surplus with the United States, particularly in the automotive sector, is excessive.
French President Emmanuel Macron criticized the additional tariffs, deeming them both economically and geopolitically misguided. He also raised concerns about the timing of the tariffs, noting the irony that some of the U.S.’s oldest allies are the first to be targeted. "There is a kind of paradox in seeing the United States' main allies being the first to be taxed," he stated.
Jose Lopez-Tafall, director general of the Spanish Association of Automobile and Truck Manufacturers, described the tariffs as "clearly negative," warning that they could lead to "an economic confrontation" between the two sides.
Sonali Chowdhry, a trade expert at the German Institute for Economic Research, remarked that the new U.S. administration is adopting an increasingly confrontational approach towards its trading partners. She highlighted that the auto tariffs target a highly globalized industry and are likely to disrupt intricate international supply chains.
The Czech Automotive Industry Association also expressed "serious concern" regarding the potential impact of the duties on European manufacturers and suppliers, cautioning that the tariffs jeopardize their global competitiveness.
Experts generally concur that the rising tariffs will result in economic harm for both Europe and the United States. The anticipated increase in costs is expected to directly affect U.S. consumers, exacerbating inflation while suppressing European exports and potentially resulting in job losses across the continent. Furthermore, many vehicles produced in the U.S. rely heavily on components sourced from Europe.
"A trade war has no winners," stated Dirk Jandura, president of the Federation of German Wholesale, Foreign Trade and Services. The organization had previously predicted a 2.7 percent decline in German foreign trade by 2025, but Jandura noted that this forecast will need to be significantly revised downward.
In the U.S. car market, the tariffs could add thousands of dollars to the cost of an average vehicle, contradicting Trump’s campaign promise to reduce consumer prices. Ferrari announced price increases of up to 10 percent for cars sold in the U.S., with other automakers also indicating potential price hikes.
American industry analysts have noted that Tesla, the electric vehicle manufacturer led by Trump administration advisor Elon Musk, may be better positioned than others since it produces all the cars it sells in the U.S. within Texas and California.
However, Musk stated on Wednesday via X that Tesla is not immune to the tariffs. "Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant," he wrote.
Despite this, auto industry analyst Daniel Ives from Wedbush Securities told NPR, "Tesla is the one least impacted" among U.S. carmakers.
Frederick R Cook for TROIB News
Find more stories on Business, Economy and Finance in TROIB business
