Germany urges sturdy response to Trump’s auto tariffs – DW – 03/27/2025 | EUROtoday

Germany’s Vice Chancellor and Economy Minister Robert Habeck on Thursday urged a robust European Union (EU) response to the US import tariffs on vehicles declared by President Donald Trump.

“It must be clear that we will not give in to the US. We need to show strength and self-confidence,” Habeck mentioned.

Trump introduced on Wednesday that a 25% tariff on all autos imported to the US is about to kick in on April 2.

European exporters contemplate retaliatory motion

Trump has claimed auto tariffs purpose to guard US companies and increase home manufacturing, however Habeck it might be “bad news for he US,” together with German carmakers, the German financial system, and the EU.

European Commission President Ursula von der Leyen described Trump’s tariffs as “bad for businesses, worse for consumers.”

Elsewhere in Europe, France’s Finance Minister Eric Lombard mentioned the “only solution” can be for the EU to boost tariffs on US merchandise in response.

Meanwhile, the UK mentioned it was not planning any retaliatory measures “at the moment.”

“We are looking to secure a better trading relationship with the United States. I recognize that the week ahead is important. There are further talks going on today, so let’s see where we get to in the next few days,” mentioned Rachel Reeves, Britain’s finance minister.

Top automobile exporters to the US warn of wider affect

Half of the vehicles offered within the United States are manufactured domestically. Of the imported autos, about half come from Mexico and Canada, with Japan, South Korea, and Germany additionally enjoying main roles as suppliers.

Japan known as the tariffs “extremely regrettable.” Japanese Prime Minister Shigeru Ishiba reiterated that he needs Japan to be exempt from such tariffs.

“Japan has made significant investments and significant job creation, which doesn’t apply to all countries … We are the number one country in investment in the United States,” Ishiba added. He mentioned failing that, “all options are naturally subject to consideration.”

South Korea’s commerce and business minister Ahn Duk-geun held an emergency assembly with main automakers.

“The government will work closely with the industry to devise countermeasures and, in coordination with other ministries, announce a comprehensive emergency response plan for the auto sector in April,” Ahn mentioned.

The newest levies will likely be along with these Trump already imposed on neighboring international locations.

Canadian Prime Minister Mark Carney was assembly his cupboard on Thursday to debate what he known as a “direct attack” on his nation’s employees.

Musk mentioned value of tariffs ‘not trivial’ for Tesla

Trump mentioned the tariffs could possibly be internet impartial for Tesla, the electrical car firm led by one in all his main backers, Elon Musk.

“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote on X.

The Center for Automotive Research estimated that US tariffs may enhance automobile costs by 1000’s of {dollars} and affect jobs.

Peter Navarro, Trump’s senior commerce counselor, dismissed this, saying “foreign trade cheaters” turned America’s manufacturing sector right into a “lower wage assembly operation for foreign parts.”

Edited by: Wesley Rahn