The European Union must respond decisively to the new US tariffs on cars, but Brussels must also continue negotiations with Washington to avoid a ruthless increase in reciprocal tariffs. This was stated by German Economy Minister Robert Habeck.
“Now is the time for the EU to give a decisive response to the tariffs - it must be clear that we will not give in to the US. At the same time, we will continue to support the European Commission in finding a negotiated solution with the US that prevents an endless exchange of tariff restrictions“, Habeck said in a statement released by the ministry's press service.
The head of the German Automobile Manufacturers' Association (VDA) Hildegard Müller called the new tariffs “a fatal signal” for international trade. They would be a “significant burden”, she said. both for car manufacturers in Germany and for foreign companies linked to their production chain, as well as for consumers, especially in the US itself. “The German car industry is calling for immediate negotiations between the US and the EU on a bilateral trade agreement”, Müller said.
The US is the largest importer of German cars. According to the Federal Statistical Office, in 2024 it will account for 13.1% of all export deliveries by German manufacturers, followed by the UK (11.3%) and France (7.4%). This will particularly affect luxury brands - almost a third of Porsche's sales are in the US, and Americans will become buyers of one in six BMW models by 2024.
On March 26, Trump announced that the US would impose import tariffs of 25% on all cars made outside the country. The previously applied 2.5% tariff is also set to remain in place, making the new tariff rate 27.5%.