Germany has strongly opposed U.S. President Donald Trump’s decision to impose a 25% tariff on imported vehicles. Officials and industry leaders argue that these tariffs threaten both the European and U.S. economies. They insist that Germany “will not give in” to the pressure.
German Economy Minister Peter Altmaier stressed the need for urgent talks between the European Union and the United States. He warned that the tariffs could harm free trade and disrupt global supply chains. Meanwhile, the German Association of the Automotive Industry (VDA) criticized the move, calling it a “provocation.” VDA President Hildegard Müller argued that using tariffs as a bargaining tool is risky and could spark a global trade war.
The financial impact is already visible. Shares of major German automakers, including Volkswagen, BMW, and Daimler, have dropped sharply. Volkswagen, in particular, suffered significant losses due to its reliance on Mexican supply chains and limited production in the U.S.
European automakers have also spoken out. They warn that these tariffs will not only hurt businesses but also increase car prices for consumers in North America. Additionally, supply chains that connect global markets could face major disruptions.
The European Union is now considering its response. While Germany urges further negotiations, some EU nations favor immediate retaliatory action. The disagreement has sparked debate within the bloc over the best way to handle the situation.
Germany remains firm in its opposition, pushing for urgent talks to ease tensions and avoid a deepening trade conflict. The coming weeks will be crucial in determining how both sides move forward.
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