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The United States is a crucial export market for the German auto industry, which is already suffering from weak sales and increased competition from China.
By Liz Alderman
Liz Alderman, who covers the European economy, reported from Paris.
- March 27, 2025, 8:34 a.m. ET
President Trump’s sweeping tariffs on automobiles drew a sharp reaction on Thursday from Germany, which called on the European Union to hit back with a “firm response” to measures that would “harm the U.S. and the E.U., and global trade as a whole.”
Mr. Trump announced on Wednesday that he would impose a 25 percent tariff on cars and car parts shipped to the United States, putting pressure on America’s top trade allies around the globe. The tariffs, which he said were permanent, will go into effect on April 3.
The United States is a crucial market for Germany’s auto industry, which ships vehicles from automakers like BMW, Mercedes-Benz and Volkswagen to American dealers.
“It must be clear that we will not back down,” Robert Habeck, Germany’s economy minister, said in a statement on X. “Strength and self-confidence are required.”
He added that Germany would support the European Commission, the European Union’s executive arm, as it negotiates with the United States to find a solution that averts a tariff spiral.
France’s finance minister, Eric Lombard, called Mr. Trump’s action “very bad news” and said the only alternative was for Europe to increase its own tariffs on U.S. auto imports.
