A set of key questions about US trade strategy and the consequences for the global economy, is surfaced by the US president’s decision Donald Trump to impose dictatorial In imported cars in the US, according to an analysis by the German magazine Focus.
Since April 3rd, Trump duties are expected to hit the US vehicles in the US, with Germany facing the biggest challenges.
This move is part of Trump’s broader strategy to enhance domestic production and a reduction in trade deficits, as it has long been complaining about commercial inequalities with other countries claiming that “the US is a” piggy bank “from which everyone is stealing.”
The most important questions are as follows:
1. What exactly do new invoices look like?
Duties apply to all imported cars – from small cars to limousines and from SUVs to light business vehicles. In addition to imported vehicles, the duty will also apply to basic car accessories. The 25% duties will be in force on April 3, according to the White House, and will be imposed in addition to existing duties.
2. Why does Trump impose duties?
Trump uses duties to strengthen the US as a place of production and reduce commercial deficits. “Automotives who already have factories in the US can consider themselves lucky,” he said, because those who produce in the US do not need to pay sanctions. “Sometimes your friends themselves are the biggest scammers,” Trump’s trade adviser, Peter Navarro, criticized, referring to Germany and Japan.
The US is importing a significant proportion of motor vehicles, engines and other car accessories. Imports of vehicles and car spare parts significantly exceed exports. The most important suppliers include Mexico, Japan, South Korea, Canada and Germany.
3. What bothers Trump about the EU?
Trump is always publicly protesting for the European Union – and this is now the case with the announcement of his duties. “One of the reasons I impose duties is because we get millions of their cars – BMW, Volkswagen, Mercedes Benz,” the Republican said. At the same time, it is “almost impossible” to import US cars in the EU due to further commercial barriers.
It is worth noting that although the US imposes only 2.5% on cars from the EU (so far), the EU is imposing 10% on imports of US cars. However, US truck duties and light business vehicles are significantly higher and amount to 25%.
Trump criticizes other EU regulations, such as strict emissions and security standards. Specifically, it repeatedly criticizes the value added tax levied in Europe, but this is not very well -founded because US imports from the US are partially subject to the same terms of VAT as European vehicles.
4. What do duties mean to Germany?
Vehicle import duties are likely to significantly burden the German automotive industry, because the US is the most important market for its sales, as the latest figures of the federal statistical service show. No other country took as many new cars from Germany in 2024 as the US: leading 13.1%of exports, followed by the United Kingdom (11.3%) and France (7.4%). However, German automakers are already producing cars in the US on a large scale to avoid duties.
5. How will the EU react?
The EU Committee, which is responsible for commercial policy, wants to fight with determination and clarity. Therefore, he recently addressed Trump’s urgent warning against the introduction of new duties. Following the announcement of the new duties, EU Commission Chairman Ursula von der Laien said that European companies would be protected. At the same time, he said that the EU would try to find solutions through negotiations. “We will now evaluate this announcement along with other measures considering the US in the coming days,” she said.
6. What exactly is planned?
So far, the EU does not want to comment on this issue publicly. It has already been announced that special duties currently suspended in American products, such as jeans, whiskey Burbon, motorcycles and peanut butter will come back in mid -April.
However, this is done in response to US special duties to steel and aluminum imports, which came into force two weeks ago. Depending on the extent of additional US measures, they will be completed by further new special duties. They could also theoretically influence US technology companies, such as those belonging to Trump’s trustee, Elon Musk.
But Trump emphasized that new duties could prove to be “neutral or good” for Tesla. “It has a big factory in Texas. It has a large factory in California. And whoever has factories in the United States, I think will go well, “Trump said for Musk.
7. What is likely to happen now?
In a less ugly scenario, Trump could be persuaded to temporarily suspend the duties and then start negotiations. This was recently happened with Canada and Mexico. But now neither Trump nor his adviser are eager to negotiate. The new duties are “permanent”, the US president said and Navarro expressed a similar view.
In the EU, it is also expected that many more new duties will be imposed on imports other than car duties. Trump has been saying for weeks that April 2nd – when he will announce a large -scale package – will be a “day of liberation” for the country.
According to the German News Agency, the European Commission informed the Member States on Wednesday that they should be prepared for such decisions. They could, for example, affect the EU pharmaceuticals and food producers.
8. Did the EU try to prevent the tariff conflict?
Yes, EU Commissioner Maros Sefsovic has had talks with US government representatives in Washington in recent days. Once again he tried to prevent the escalation of the trade conflict, but without success. It is now expected that real negotiations will only begin when the EU responds to new US duties with countermeasures, such as reciprocal duties. According to current plans, this should happen in mid -April.
9. What is Trump’s tariff policy?
Trump deliberately uses duties as a means of pressure on foreign policy to achieve his goals. It is noted that it has already imposed punitive measures on imports from China, Canada and Mexico. He suspended, at least temporarily, some of the duties on these two neighbors – partly at the urging of the US automotive industry. The US government also imposed duties on all steel and aluminum imports.
It is recalled that the import duty is a tax imposed on the goods imported from abroad. It is usually paid by the importing company – so US companies have to pay the duty. The goal is to prevent them from importing foreign products.
Experts believe that duties are a dangerous strategy for tackling a trade conflict, as they mainly cause rise in consumer prices and therefore more affecting ordinary citizens.
Trump’s announcements on duties have recently caused the Stock Exchange, while the US Federal Bank revised its prediction for growth this year.