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‘Fatal signal’ for free trade: Germany calls for EU response to Trump car tariffs

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  • German officials reacted to President Donald Trump’s announcement of 25% tariffs on foreign car imports and auto parts. They said the tariffs would hurt free trade and economic prosperity.
  • Germany has three big names that conduct business with the U.S.: Volkswagen, BMW and Mercedes-Benz.
  • One high-ranking German official called on the European Union to respond decisively and vowed not to back down to the U.S.

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Germany’s economy minister, Robert Habeck, reacted to President Donald Trump’s 25% tariffs on car imports and auto parts. He stated that the new tariffs are bad news for German car manufacturers and the economy.

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Habeck urged the European Union to respond decisively to these latest tariffs, stating that they will ultimately harm the U.S., the EU and global trade overall.

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What German car brands will likely be affected by the tariffs?

In 2023, CNBC reported Germany was the largest exporter of cars to the U.S. Brands exported to the U.S. include Volkswagen, Mercedes-Benz and BMW.

In fact, when it comes to trade and the automotive industry, BMW said its plant in Spartanburg, South Carolina, is its biggest plant worldwide. The company said it has been an important production location for more than 30 years.

How much business do they conduct in the US?

BMW said the South Carolina plant exported 225,000 BMWs in 2024, valued at more than $10 billion. A spokesperson for BMW said a trade conflict would not have any benefits.

The president of the German Association of the Automotive Industry, Hildegard Muller, called the 25% tariffs a “fatal signal for free, rules-based trade.”

Muller said the risk is high on all sides, with negative effects likely on the global economy, prosperity, jobs and prices.

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[Craig Nigrelli]

GERMANY’S ECONOMY MINISTER REACTED TO PRESIDENT DONALD TRUMP’S 25 % TARIFFS ON CAR IMPORTS, AS WELL AS AUTO PARTS. HE SAID, THE NEW TARIFFS ARE BAD NEWS FOR GERMAN CARMAKERS AND THE GERMAN ECONOMY.
ROBERT HABECK CALLED ON THE EUROPEAN UNION TO PROVIDE A DECISIVE RESPONSE TO THESE LATEST TARIFFS SAYING THEY QUOTE “ ULTIMATELY HARM THE U.S. AND THE EU AND GLOBAL TRADE AS A WHOLE. “
HABECK CALLED ON THE EUROPEAN UNION TO DELIVER A DECISIVE RESPONSE AND MAKE IT CLEAR, THAT QUOTE “ WE WILL NOT BACK DOWN IN THE FACE OF THE U.S.”
CNBC REPORTS THAT GERMANY IS THE LARGEST EXPORTER OF CARS TO THE UNITED STATES, DATING BACK TO 2023, INCLUDING VOLKSWAGEN, MERCEDES-BENZ AND BMW. IN FACT WHEN IT COMES TO TRADE AND THE AUTOMOTIVE INDUSTRY, BMW SAYS ITS PLANT IN SPARTANBURG, SOUTH CAROLINA IS ITS BIGGEST PLANT WORLDWIDE AND HAS BEEN AN IMPORTANT PRODUCTION LOCATION FOR MORE THAN 30 YEARS.
BMW SAYS THE SOUTH CAROLINA PLANT EXPORTED 225,000 BMWS IN 2024 WITH A VALUE OF MORE THAN $10 BILLION. A SPOKESPERSON FOR BMW SAID A TRADE CONFLICT WOULD NOT HAVE ANY BENEFITS.
THE PRESIDENT OF THE GERMAN ASSOCIATION OF THE AUTOMOTIVE INDUSTRY, HILDEGARD MULLER, CALLED THE 25 % TARIFFS, A “FATAL SIGNAL FOR FREE, RULES-BASED TRADE”.
HE SAYS COMPANIES AND THE GLOBAL SUPPLY CHAIN WILL FEEL A SIGNIFICANT BURDEN AS THE TWO ARE INTERWOVEN AND THAT NEGATIVE CONSEQUENCES WILL BE FELT BY CONSUMERS.
MULLER SAYS THE RISK IS HIGH ON ALL SIDES WITH NEGATIVE EFFECTS LIKELY ON THE GLOBAL ECONOMY, PROSPERITY, JOBS AND PRICES. FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS APP