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The US automotive industry and its competitors in Europe and Asia are in a state of shock after US President Donald Trump’s decision to impose a 25% duty on all vehicles and parts made abroad. The European Union has already stated that it is ready to respond to this step with appropriate measures, Bloombergreports.
Reaction of the EU and leading countries
European Commission President Ursula von der Leyen was quick to respond to Trump’s announcement, calling it a “serious blow” to the European auto industry. “The duty is harmful to both businesses and consumers in the US and Europe,” she said. Brussels is currently considering retaliatory measures.
France calls on the EU to immediately raise its own tariffs, while Germany insists on a tough but balanced response. The UK, for its part, is trying to avoid an escalation of the trade war.
Economic implications for the industry
According to the data, the US imported $214 billion worth of cars in 2024, including shipments from allies such as Japan, Mexico and South Korea.
Shares of European carmakers such as BMW, Daimler and Continental fell after Trump’s announcement. Germany’s automotive lobby, the VDA, called the move a “fatal signal” for global trade.
Analysts warn that the new duties will add thousands of dollars to the cost of cars in the US and will also slow down production in North America due to the close integration of production processes between the US, Canada and Mexico.
Political aspect and possible scenarios
Trump has said he could impose even tougher tariffs if the EU and Canada try to retaliate. At the same time, Europe is already discussing the possibility of negotiations with Washington to avoid a large-scale economic war.
However, not everyone in the US condemns the president’s decision. The UAW, an association of automotive workers, supported the duties as they could bring thousands of jobs back to the US.
Clearly, this escalation is the most serious trade conflict between the US and Europe in recent years. The EU’s response will be key to further developments.
