Trump announces tariffs of 25 percent on car imports

"If they were made in the USA, there are absolutely no tariffs," said the Republican in the White House. The tariffs on car imports were "permanent". A Trump aide said that the 25 percent tariffs would be on top of existing tariffs on car imports.

The move further inflames 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 use the tariffs to strengthen the USA as a production location and reduce trade deficits.

"We will get back some of the money that was taken from us," argued Trump, who has long complained about trade imbalances with other countries. The US President predicted that the move would ensure that car manufacturers would once again produce more in the USA and asserted: "I think our automotive industry will flourish like never before."

This is the beginning of the "day of liberation in America", Trump continued. He 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. The car tariffs are therefore just a foretaste of further special levies that Trump wants to introduce in the coming week.

USA imports many cars

The most important car manufacturers in the USA are General Motors, Ford and Stellantis, which together account for around half of the country's car production. However, the USA also imports a significant proportion of cars, engines and other car parts.

Almost half of all vehicles sold in the US are imported, as the New York Times reported, citing data from Wall Street consulting firm Bernstein. Almost 60 percent of the parts in vehicles assembled in the USA come from abroad.

USA is an important sales market

The most important suppliers include Mexico, Japan, South Korea, Canada and Germany. Tariffs on vehicle imports are therefore likely to have a significant impact 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 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). According to the German Association of the Automotive Industry, exports to the USA have thus increased compared to the previous year.

Trump regularly rails against the EU

However, the entire European Union is a thorn in the side of the Republican - because the USA imports more cars from the EU than vice versa. In the past, the 78-year-old has repeatedly railed against the EU's tariffs on car imports from the USA. 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. Some companies therefore produce in the USA or deliver the vehicles in individual parts and assemble them in the USA.

Trump is also bothered by other EU regulations such as strict emissions and safety standards, which could act as further barriers to trade.

Car prices in the USA are likely to rise with the imposition of far-reaching tariffs. According to the New York Times, some manufacturers such as Ford Motor, Hyundai and Stellantis could benefit temporarily from the tariffs as they would have many unsold vehicles at dealerships.

Tariffs as a strategic instrument of power

Trump uses tariffs specifically as a means of exerting pressure in foreign policy. He has already imposed punitive measures on imports from China, Canada and Mexico. He partially suspended the tariffs again, at least for the two neighbors - also 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. 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