Germany’s leadership has called for a strong EU response to Donald Trump’s decision to impose a 25% tariff on all imported vehicles, beginning April 2. Outgoing Chancellor Olaf Scholz stated, “The US has chosen a path at whose end lie only losers, since tariffs and isolation hurt prosperity, for everyone.”
European Leaders Urge Firm Response
Germany’s Economy Minister Robert Habeck emphasized, “It must be clear that we will not give in to the US. We need to show strength and self-confidence.” European Commission President Ursula von der Leyen described the tariffs as “bad for businesses, worse for consumers.”
French Finance Minister Eric Lombard called for the EU to raise tariffs on US products in response, while President Macron warned tariffs would create “an inflationary effect in the short term, and destroys jobs.”
Impact on the Auto Industry Worldwide
Car stocks fell globally, with General Motors dropping 7% and Ford falling 2% in the US. Japan called the tariffs “extremely regrettable,” with Prime Minister Ishiba highlighting Japan’s investments in the US as reasons for exemption. South Korea’s trade minister promised a comprehensive response plan by April.
North American Neighbors React
Canadian Prime Minister Mark Carney met with his cabinet to discuss what he called a “direct attack” on his country’s workers. Mexico’s Economy Minister argued there should be no tariffs within the United States-Mexico-Canada trade agreement.
Consumer Impact and Corporate Responses
Analysts estimate the tariffs could increase car prices by $4,000-$10,000, depending on the vehicle. Even Tesla will feel effects, with Elon Musk noting, “The cost impact is not trivial.”
Italian luxury carmaker Ferrari has announced price increases of up to 10% on US imports. Trump has threatened “far larger” tariffs if Europe works with Canada against US interests.