Germany leads global backlash against Trump’s 25% car tariffs
Germany has vowed not to back down as U.S. President Donald Trump imposes a 25% tariff on imported cars and car parts, sparking global condemnation. German Economy Minister Robert Habeck declared that Europe must “respond firmly” to the move, warning that the European Union (EU) will not be pressured by U.S. trade policies.
The tariffs, set to take effect on April 2 for cars and later in May for parts, have triggered strong reactions from world leaders.
French President Emmanuel Macron criticized the decision as “a waste of time” that could disrupt supply chains and fuel inflation. Canada’s Prime Minister Mark Carney called it a “direct attack” on his country’s car industry, while China accused the U.S. of violating World Trade Organization rules.
Major automakers have already felt the impact, with stock prices dipping globally. In the U.S., General Motors’ shares fell by 7%, while Ford saw a more than 2% decline.
Analysts warn that tariffs on car parts from Canada and Mexico alone could increase vehicle costs by $4,000 to $10,000, according to the Anderson Economic Group.
Amidst the backlash, Japan and South Korea have voiced concerns about the economic impact on their trade relationships with the U.S. While South Korean automaker Hyundai announced a $21 billion investment in the U.S. ahead of the tariffs, Japan’s government has formally requested an exemption.
Meanwhile, Trump defended the tariffs as a strategy to boost domestic manufacturing, stating that if cars are made in America, there will be “absolutely no tariff.” He hailed Hyundai’s investment as proof that tariffs “very strongly work.”
The International Monetary Fund (IMF) has warned that a full-blown trade war could significantly affect the economic outlooks of Canada and Mexico, though it is not currently projecting a U.S. recession.
Source: BBC
