Overview

• President Donald Trump officially announced a 25% tariff on all imported cars not manufactured in the United States, effective April 2, 2025.
• The tariffs aim to reduce trade deficits and encourage domestic manufacturing, a key element of Trump's protectionist trade strategy.
• The German auto industry, heavily reliant on the US as its largest export market, is expected to face severe economic repercussions.
• The European Union has delayed retaliatory measures to allow for ongoing negotiations with US officials to prevent a trade war.
• US consumers are likely to see higher car prices due to the tariffs, while the domestic auto industry has expressed surprise at the sudden announcement.