US President Donald Trump has escalated the trade conflict with Germany, the EU and other major trading partners, imposing additional tariffs of 25% on imported cars. In the past year, Germany delivered 445,000 cars worth $24.8 billion to the US, making the United States the most important market for German manufacturers.
German Economy Minister Robert Habeck called for a consistent response to the tariffs imposed by US President Donald Trump on all non-US-made cars. “It now comes down to whether the EU will give a determined response to the tariffs – it must be clear that we will not back down against the US” the Green Party politician said on Thursday.
The president of the Association of the Automotive Industry (VDA) described the decision as a fatal signal for free and rule-based trade. “The tariffs, which are to take effect from April 2, pose a significant burden for the companies and the globally interconnected supply chains of the automotive industry” VDA President Hildegard Müller said.
European Commission President Ursula von der Leyen described the step as “bad for the companies and even worse for the consumers” while Canadian Prime Minister Mark Carney called the tariffs a “direct attack” on Canadian workers. He also stated that retaliatory measures are being considered.
“We will defend our workers, we will defend our companies, we will defend our country and we will defend it together” Carney said to reporters in Ottawa.
Further German politicians called for a hard response from the EU. “The response can only be European, as external trade is within the EU’s competence” CDU Foreign Policy Chief Armin Laschet told ZDF. “We must react with full force for the entire European internal market.”
Japan’s Prime Minister stated that Tokyo will soon respond to the new US tariffs. “We must weigh what is best for Japan’s national interests. We are placing all options on the table to find the most effective response” Prime Minister Shigeru Ishiba said in Parliament.
Brazil’s President Luiz Inácio Lula da Silva stated that Trump risks harming the US economy with additional tariffs.
“Protectionism helps no country in the world” Lula said at a press conference in Tokyo. He announced that he will file a complaint against a trade tariff on Brazilian steel at the World Trade Organization (WTO).
On the other hand, United Auto Workers Union (UAW) President Shawn Fain reacted positively:
“We applaud the Trump administration for its engagement in ending the free trade disaster that has been burdening the working class for decades. These tariffs are an important step in the right direction for the auto workers and the labor communities across the country” Fain said.
The United Auto Workers, a union long critical of free trade agreements that, in their opinion, have destroyed US jobs, praised the Trump administration’s step.