European automobile builders warn that Trump tariffs harm all

The European Association of Automobile Manufacturers (ACEA) warned on Thursday that 25% tariffs on cars manufactured outside the US, instituted by President Donald Trump, will have a global negative impact on the sector. US manufacturers will also feel the impact.

« We ask President Trump to consider the negative impact of tariffs, not only on global manufacturers, but also about the US national industry, » said Acea Director-General.

According to Sigrid de Vries, tariffs will not only affect imports to the US, a penalty that should be supported by local consumers. Automobile parts measures will also hinder manufacturers that produce cars in the US for export markets.

The American manufacturer Tesla acknowledged that it will not be spared the tariff policy implemented by the US Administration.

« It is important to note that Tesla has not unharmed this problem. The impact of Tesla tariffs is still significant, » said Elon Musk, owner of Tesla and advisor to Donald Trump.

Measures may affect the musk company if other affected countries apply the same tariffs to US products, but also due to the tariffs imposed on imports of car components.

German car manufacturers also criticized the increase in customs on cars, decided on Wednesday by the US President considering them « a fatal sign for free trade. »

The 25% of additional customs’ customs rates « represent a considerable burden on global companies and supply chains » in the automotive industry, « with negative consequences, especially for consumers, including North America, » the German Association of Automobile Manufacturers (VDA) said in a statement.

« The consequences will be felt in the growth and prosperity of all sides, » added VDA. The association asks the US and the European Union (EU) to quickly enter negotiations to find a “more balanced approach”, warning that the “risk of a global trade conflict” is “high on all sides”.

On Wednesday, Donald Trump announced that the new rates will be applied to “all united cars in the United States” from April 2. The rate applied so far was 2.5%. This means that imported cars will now be taxed at 27.5% of its value.

The reaction to Donald Trump’s decision was immediate in Asia, with Japan and South Korea responding with 16% and 15% tariffs, respectively, total US car imports.

Japanese Prime Minister Shigero Ishiba said Thursday that he will respond « properly » to the new US-imposed tariffs on the « with all available options. »

Japan is particularly vulnerable. Last year, cars represented 28% of Japanese exports to the US, or 1.35 million vehicles, worth $ 40 billion.

About 2% of Japan’s GDP depends on the exports of goods to the US and the automotive industry is a key pillar of the archipelago’s economy, where about 10% of jobs are linked to the sector.