‘s Vice Chancellor and Economy Minister Robert Habeck on Thursday urged a strong reaction to the US import tariffs on cars declared by President Donald Trump.
“It must be clear that we will not give in to the US. We need to show strength and self-confidence,” Habeck said.
Trump announced on Wednesday that is set to kick in on April 2.
European exporters consider retaliatory action
Trump has claimed auto tariffs aim to protect US businesses and boost domestic manufacturing, but Habeck it would be “bad news for he US,” along with German carmakers, the German economy, and the EU.
European Commission President Ursula von der Leyen described as “bad for businesses, worse for consumers.”
Elsewhere in Europe, France’s Finance Minister Eric Lombard said the “only solution” would be for the in response.
Meanwhile, the UK said it was not planning any retaliatory measures “at the moment.”
“We are looking to secure a better trading relationship with the United States. I recognize that the week ahead is important. There are further talks going on today, so let’s see where we get to in the next few days,” said Rachel Reeves, Britain’s finance minister.
Top car exporters to the US warn of wider impact
Half of the cars sold in the United States are manufactured domestically. Of the imported vehicles, about half come from Mexico and Canada, with Japan, South Korea, and Germany also playing major roles as suppliers.
Japan called the tariffs “extremely regrettable.” Japanese Prime Minister Shigeru Ishiba reiterated that he wants Japan to be exempt from such tariffs.
“Japan has made significant investments and significant job creation, which doesn’t apply to all countries … We are the number one country in investment in the United States,” Ishiba added. He said failing that, “all options are naturally subject to consideration.”
South Korea’s trade and industry minister Ahn Duk-geun held an emergency meeting with major automakers.
“The government will work closely with the industry to devise countermeasures and, in coordination with other ministries, announce a comprehensive emergency response plan for the auto sector in April,” Ahn said.
The latest levies will be in addition to those Trump already .
Canadian Prime Minister Mark Carney was meeting his cabinet on Thursday to discuss what he called a “direct attack” on his country’s workers.
Musk said cost of tariffs ‘not trivial’ for Tesla
Trump said the tariffs could be net neutral for Tesla, the electric vehicle company led by one of his major backers, Elon Musk.
“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote on X.
The Center for Automotive Research estimated that US tariffs could increase car prices by thousands of dollars and impact jobs.
Peter Navarro, Trump’s senior trade counselor, dismissed this, saying “foreign trade cheaters” turned America’s manufacturing sector into a “lower wage assembly operation for foreign parts.”
Edited by: Wesley Rahn
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