Commercial war escalated: EU Commission is preparing against Trump

Donald Trump announces 25 percent tariffs to all auto imports and thus tightens the trade dispute with the European Union. The United States is a piggy bank from which every claw, said the Republican, who has been complaining about retailing with other countries for a long time. The auto industry in particular should take the punitive measures hard. The most important questions about this:

What do the new tariffs look like?

The tariffs apply to all imported cars – from small cars to limousines and SUVs to light commercial vehicles. The import customs are also due for central auto parts. The high tariffs should come into force on April 3, as it was said from the White House. Trump had previously spoken of April 2, but also said that the United States would only collect from April 3. The tariffs are also collected in addition to existing tariffs. Importers from Canada and Mexico can prove that their products contain US shares, so that customs are only applied to the non-US share.

Why does Trump impose tariffs?

Trump wants to strengthen the United States as a production location with the tariffs and reduce trade deficits. Car groups that already had factories in the United States could count themselves lucky, he said. Because only those who produce in the United States do not have to pay punishment. Sometimes your own friends are the greatest fraudsters, Trump’s trade advisor, Peter Navarro, complained, and thus alluded to Germany and Japan.

The United States imports a significant part of motor vehicles, engines and other car parts. The imports of vehicles and car parts clearly exceed the exports. The most important suppliers include Mexico, Japan, South Korea, Canada and Germany.

What bothers Trump especially on the EU?

Trump repeatedly complains publicly about the European Union – so now at his customs announcement. « One of the reasons why I introduce tariffs is that we take millions of their cars – BMW, Volkswagen, Mercedes Benz, » said the 78 -year -old. At the same time, due to further trade barriers, it was « almost impossible » to import US cars into the EU.

The fact is: While the United States only raises 2.5 percent inches on EU cars, the EU requires 10 percent on US auto imports. However, the US tariffs on pickups and light commercial vehicles are significantly higher with 25 percent. Trump is also bothered by other EU regulations such as strict emissions and security standards. Again and again he also criticizes the VAT raised in Europe. However, this is not very valid – among other things, because US auto imports are subject to the same conditions as European vehicles in terms of VAT.

How will the EU react?

The EU Commission responsible for trade policy wants to resolve and significantly back. She had recently urged Trump’s recently warned of the introduction of the new tariffs. EU Commission President Ursula von der Leyen said after the announcement of the new tariffs that European companies would be protected.

The EU would strive for negotiation solutions, she said. « We will now evaluate this announcement together with other measures that the United States consider in the next few days. »

What is specifically planned?

In order to make concrete calculations more difficult for the US President, the EU does not want to comment on this. It has already been announced that the special tariffs currently exposed to US products such as jeans, bourbon whiskey, motorcycles and peanut butter will be reintroduced in mid-April. However, this is the response to the US special tariffs already applicable to steel and aluminum imports that came into force two weeks ago. Depending on the scope of the additional US measures, they should be supplemented by further new special levies. In theory, you could also meet US Tech companies such as those of Trump confidante Elon Musk.

Trump said the new tariffs could prove to be « neutral or good » for Tesla. « He has a great work in Texas. He has a great work in California. And everyone who has works in the United States will be good in my opinion, » said Trump about Musk.

How could it go on now?

In a less bad scenario, Trump could quickly be convinced to temporarily suspend the tariffs – and then start negotiations. This was last the case with Canada and Mexico. But now neither Trump nor his consultant sounded willing to negotiate. The new tariffs are « permanent, » said the US President. Navarro was similar.

In the EU it is also expected that in addition to the car tariffs, numerous other new tariffs are also imposed on imports. Trump has been talking about the April 2 – on which he wants to announce a large -scale customs package – will be a « day of liberation » for the country.

According to information from the German Press Agency, the EU Commission informed the Member States on Wednesday that they should adapt to corresponding decisions. For example, you could meet pharmaceutical manufacturers and food producers from the EU.

Didn’t the EU try to avert the customs conflict?

But. In the past few days there have been talks from the responsible EU commissioner Maros Sefcovic with representatives of the US government in Washington. He had tried again to prevent the trade conflict from escalating, but was unable to achieve any tangible success. It is now expected that real negotiations will only begin when the EU responds to the new US tariffs with countermeasures such as retaliatory tariffs. According to current plans, this should be done in mid -April.

What about Trump’s customs policy?

Trump specifically uses Zölle as a means of pressure in foreign policy to achieve his goals. He has already imposed punitive measures on imports from China, Canada and Mexico. At least for the two neighbors, he at least temporarily stopped the tariffs – also at the urging of the American auto industry. The US government also imposed the tariffs on all steel and aluminum imports.

An import customs is a tax that is levied on the border on goods that are introduced from abroad. As a rule, she pays the importing company – so the US companies have to pay the taxes. The aim is to prevent them from importing foreign products.

Experts consider tariffs to be a risky strategy to carry out a trade conflict because this primarily causes consumer prices and thus the normal citizens hit the most. Most recently, Trump’s announcements had triggered turbulence on the stock market. The US Federal Reserve Fed has also corrected its growth forecast for this year.