Heavy blow for car manufacturers Trump gets serious about car tariffs: Answers to the most important questions
Trump has been imposing high tariffs on goods from all over the world since taking office. Now he is targeting the car industry and imposing high punitive levies. The announcement is particularly tough for Germany.
27.03.2025, 06:29
27.03.2025, 06:49
dpa
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- US President Donald Trump has announced tariffs of 25 percent on car imports.
- The import duty will also apply to key car parts.
- The move is further fueling the trade conflict between the USA and the European Union.
- The punitive measures are likely to hit the German car industry particularly hard.
- Trump wants to strengthen the USA as a production location and reduce trade deficits.
US President Donald Trump announces 25 percent tariffs on all car imports, exacerbating the trade dispute with the European Union. The US is a piggy bank from which everyone is stealing, said the Republican, who has long complained about trade imbalances with other countries. The punitive measures are likely to hit the German car industry particularly hard. The most important questions at a glance:
What exactly do the new tariffs look like?
The tariffs apply to all imported cars - from small cars to saloons and SUVs to light commercial vehicles. The import duty will also apply to key car parts. The high tariffs are to come into force on April 3, according to the White House. Trump had previously spoken of April 2, but also said that the USA would only start collecting tariffs on April 3. The tariffs will also be imposed in addition to existing tariffs. Importers from Canada and Mexico can prove that their products contain US content, so the tariff will only be applied to the non-US content.
Why is Trump imposing the tariffs?
Trump wants to use the tariffs to strengthen the USA as a production location and reduce trade deficits. Car companies that already have factories in the USA can count themselves lucky, he said. Because only those who produce in the USA would not have to pay any penalties. Sometimes your own friends are the biggest cheats, complained Trump's trade advisor, Peter Navarro, alluding in particular to Germany and Japan.
The USA imports a significant proportion of motor vehicles, engines and other car parts. Imports of vehicles and car parts significantly exceed exports. The most important suppliers include Mexico, Japan, South Korea, Canada and Germany.
What specifically bothers Trump about the EU?
Trump repeatedly complains publicly about the European Union - as he has now done with his tariff announcement. "One of the reasons I'm imposing tariffs is because we take millions of their cars - BMW, Volkswagen, Mercedes Benz," said the 78-year-old. At the same time, it is "almost impossible" to import US cars into the EU due to further trade barriers.
The fact is: while the USA only imposes a 2.5 percent tariff on cars from the EU, the EU charges 10 percent on US car imports. However, the US tariffs on pickups and light commercial vehicles are significantly higher at 25 percent. Trump also takes issue with other EU regulations such as strict emissions and safety standards. He repeatedly criticizes the value added tax levied in Europe. However, this is not very valid - partly because US car importers are subject to the same VAT conditions as European vehicles.
What do the tariffs mean for Germany?
Tariffs on vehicle imports are likely to place a considerable burden on the German automotive industry. This is because the USA is its most important sales market, as the latest figures from the Federal Statistical Office show. No other country took as many new cars from Germany in 2024 as the USA: with a 13.1 percent share of exports, it was in the lead, followed by the UK (11.3 percent) and France (7.4 percent). However, German car manufacturers are already producing cars in the USA on a large scale in order to avoid tariffs.
How will the EU react?
The EU Commission, which is responsible for trade policy, wants to strike back decisively and clearly. It recently issued an urgent warning to Trump against the introduction of the new tariffs. Following the announcement of the new tariffs, EU Commission President Ursula von der Leyen said that European companies would be protected. She stated that the EU would seek negotiated solutions. "We will now assess this announcement together with other measures that the US is considering in the coming days."
What exactly is planned?
In order to make it difficult for the US President to make concrete calculations, the EU does not wish to comment publicly. It has already been announced that the currently suspended special tariffs on US products such as jeans, bourbon whiskey, motorcycles and peanut butter will be reintroduced in mid-April. However, this is in response to the special US tariffs on steel and aluminum imports that came into force two weeks ago. Depending on the scope of the additional US measures, they are to be supplemented by further new special duties. They could theoretically also affect US tech companies such as those owned by Trump confidant Elon Musk.
Trump said the new tariffs could prove to be "neutral or good" for Tesla. "He has a big plant in Texas. He has a big plant in California. And anybody that has plants in the United States, I think will do well," Trump said of Musk.
What could happen now?
In a less dire scenario, Trump could quickly be persuaded to temporarily suspend the tariffs again - and then begin negotiations. This was recently the case with Canada and Mexico. But now neither Trump nor his advisor sounded willing to negotiate. The new tariffs are "permanent", said the US President. Navarro expressed similar sentiments.
In the EU, it is also expected that numerous other new tariffs will be imposed on imports in addition to the car tariffs. Trump has been saying for weeks that April 2 - when he wants to announce a large-scale tariff package - will be a "day of liberation" for the country.
According to the German Press Agency, the EU Commission informed the member states on Wednesday that they should be prepared for such decisions. They could, for example, affect pharmaceutical manufacturers and food producers from the EU.
Has the EU not tried to avert the tariff conflict?
Yes, the EU Commissioner responsible, Maros Sefcovic, has held talks with representatives of the US government in Washington in recent days. He tried once again to prevent an escalation of the trade conflict, but was unable to achieve any tangible success. It is now expected that real negotiations will only begin when the EU responds to the new US tariffs with countermeasures such as retaliatory tariffs. According to current plans, this should happen in mid-April.
What is Trump's tariff policy all about?
Trump is deliberately using tariffs as a means of exerting pressure in foreign policy to achieve his goals. He has already imposed punitive measures on imports from China, Canada and Mexico. He has at least temporarily suspended some of the tariffs on these two neighbors - partly at the urging of the American automotive industry. The US government also imposed tariffs on all steel and aluminum imports.
An import duty is a tax levied at the border on goods imported from abroad. It is usually paid by the importing company - so US companies have to pay the duties. The aim is to prevent them from importing foreign products.
Experts consider tariffs to be a risky strategy for dealing with a trade conflict, as this primarily causes consumer prices to rise and therefore affects ordinary citizens the most. Trump's announcements recently triggered turbulence on the stock market. The US Federal Reserve has also revised its growth forecast for this year downwards.