A Volkswagen (VW) Passat R automotive (L) and a Golf GTI automotive are pictured within the tower storage facility of German carmaker Volkswagen on the firm’s headquarters in Wolfsburg, central Germany, on March 11, 2025.
Ronny Hartmann | Afp | Getty Photographs
Germany’s financial system minister and auto trade lambasted U.S. President Donald Trump’s plans to impose sweeping 25% tariffs on U.S. automotive imports, saying the transfer sends a “deadly sign” to free and rules-based commerce.
Trump on Wednesday stated he would implement tariffs on all automobiles and foreign-made auto elements imported into the U.S., as a part of measures set to come back into power from April 2.
The duties, which coincide with an even broader push on levies beginning subsequent week, signify a serious escalation in an already brewing international commerce battle.
German Financial system Minister Robert Habeck referred to as for the European Union to offer a “decisive response” to Trump’s newest tariff announcement, saying the levies “finally hurt the US and the EU, and international commerce as an entire.”
“The announcement of excessive tariffs on automobiles and automotive elements is dangerous information for German carmakers, for the German financial system, for the EU, but in addition for the US,” Habeck stated Thursday in a Google-translated assertion.
“It’s now essential that the EU delivers a decisive response to the tariffs – it have to be clear that we are going to not again down within the face of the US . Energy and self-confidence are required,” he added.
European auto shares traded sharply decrease on Thursday morning, monitoring losses in Asia in a single day.
French automotive elements provider Valeo traded greater than 5% decrease at round 9 a.m. London time (5 a.m. ET), whereas Milan-listed Stellantis and Germany’s Mercedes-Benz Group and Porsche all fell round 4%.
“The introduced extra US tariffs of 25% on all passenger automobiles and light-weight industrial automobiles not manufactured within the US ship a deadly sign without spending a dime, rules-based commerce,” Hildegard Müller, president of the German Affiliation of the Automotive Trade (VDA), stated in an announcement out Wednesday.
“The tariffs, that are scheduled to take impact on April 2, will place a major burden on each corporations and the automotive trade’s carefully interwoven international provide chains—with unfavorable penalties, particularly for shoppers—together with in North America,” Müller stated.
The VDA’s Müller underlined the financial significance of free and honest commerce to each side of the transatlantic partnership and referred to as for rapid negotiations between the U.S. and EU on a bilateral settlement.
“The chance of a worldwide commerce battle – with unfavorable impacts on the worldwide financial system and development, prosperity, jobs, and client costs – is excessive on all sides,” Müller stated.
‘Unjustified’
Analysts have beforehand warned Germany’s auto sector seems to be considerably uncovered to U.S. tariffs, noting that the nation was — by a long way — Europe’s largest exporter of passenger automobiles to the U.S. in 2023.
Germany’s Volkswagen, Mercedes-Benz Group and BMW have all issued revenue warnings in current months, citing financial weak point and sluggish demand in China, the world’s largest automotive market.
Miguel Berger, German ambassador to the U.Ok., stated tariffs on automotive imports to the U.S. have been “unjustified” and an try and reorganize worldwide commerce “to the only benefit of investments within the U.S.”
“Tariffs will do enormous harm to trade and shoppers. We have to have interaction in talks & be prepared for a robust, united response,” Berger stated Thursday on the X social media platform.
Automobiles destined for export stand on railway automobiles at Bremerhaven Port earlier than being loaded onto ships on February 27, 2025 in Bremerhaven, Germany.
Sean Gallup | Getty Photographs Information | Getty Photographs
The European Car Producers’ Affiliation (ACEA) stated it was “deeply involved” by Trump’s proposed auto tariffs. The ACEA, a automotive foyer group, represents the likes of BMW, Ferrari, Renault, Volkswagen and Volvo.
“The EU and the US should have interaction in dialogue to search out a direct decision to avert tariffs and the damaging penalties of a commerce battle,” ACEA Director Common Sigrid de Vries stated in an announcement.
Sweden’s Volvo Automobiles in the meantime stated on Thursday that it was “wanting into the results of the adjustments in tariffs” as introduced by the Trump administration.
“Volvo Automobiles follows the developments in several markets together with the US. We comply with authorities guidelines and pay all required duties on all imported automobiles and on all elements as required by legislation,” a Volvo Automobiles spokesperson advised CNBC over e-mail.
“It is too quickly to remark additional at this stage,” they added.
