Germany announced that “it would not be released” and that Europe must “respond firmly” while US President Donald Trump targets car imports and car parts with 25% of taxes in its latest tariffs.
Other major economics worldwide vowed to take revenge, with France branding the “very bad news” move, Canada calls it “direct attack”, and China accused Washington of violating the rules on international trade.
Early on Thursday, sections in Frankfurt for Porsche, Mercedes and BMW have suddenly fallen with the French company Stellantis, a manufacturer of Jeep, Peugeot and Fiat.
Trump threatened to impose a “far greater” tariff if Europe works with Canada to do what he describes as “economic damage” USA.
Fresh car tariffs will enter into force on April 2.with collections for companies importing vehicles that start the next day. Part taxes are set to start in May or later.
Trump has long claimed that the tariffs are part of the drive to help us in production and say that if they are produced in America, “absolutely no tariff” will be.
Tariffs are taxes charged on goods imported from other countries.
Although measures can protect domestic companies, they also increase costs for companies that rely on parts from abroad.
Companies that bring foreign goods to the ground pay taxes to the Government. Companies can decide to transfer some or all the costs of tariff to customers.
The USA introduced about eight million cars last year – which made up about $ 240 billion (186 billion pounds) at the store and about half of the total sales.
Mexico is the best car supplier in the US, followed by South Korea, Japan, Canada and Germany.
Analysts estimated that the tariffs to the parts from Canada and Mexico could lead to an increase in costs of $ 4,000 to $ 10,000, depending on the vehicle, according to Anderson Economic Group.
German Economy Minister Robert Habeck said the European Union must “answer firmly”.
“It must be clear that we will not surrender to the US. We have to show strength and confidence,” he added.
France supports this joint approach, with the Minister of Finance Eric Lombard said that the European “only solution” to revenge on US products.
“We are in a situation where we are targeted. Or we accept it, in that case it will never stop, or answer,” Lombard added.
He emphasized the need to “rebalance the playground” so that they are now “forced to negotiate”.
Canadian Prime Minister Mark Carney called Tariff “direct attack” on his country and his car industry, adding that he would “harm us”, but discussed trade capabilities.
In the meantime, China has accused Trump of violating the rules of the World Trade Organization.
“There are no winners in a trade war or tariff war. The development and prosperity of the country has not been achieved by imposing a tariff,” said a spokesman for the Ministry of Foreign Affairs.
There are warnings from Japan that there will be a “significant impact” on the economic relationship that shares with the US. The Government spokesman described the measures as “extremely regretted” and said that officials had asked the US for exemption.
In South Korea, the day before the latest levy, Hyundai announced that he would invest $ 21 billion (£ 16.3 billion) in the US And build a new steel plant in Louisiani.
Trump welcomed the investment as “a clear demonstration that the tariffs work very strongly.”
Bosch – headquartered in Germany – he says he has confidence in the “long -term potential” of the North American market and that he will continue to expand his business there.
