Overview

• The United States will impose a 25% tariff on all imported cars and light trucks starting April 2, 2025, as part of President Trump's strategy to reduce trade deficits and bolster domestic manufacturing.
• The European Union, Canada, and Japan have announced plans for countermeasures, with the EU considering reintroducing suspended tariffs on US goods like bourbon and motorcycles by mid-April.
• The German auto industry, heavily reliant on the US market, faces significant challenges, though the broader economic impact on Germany's GDP is expected to be limited.
• US consumers are likely to see vehicle prices rise by thousands of dollars, with potential inflationary effects and reduced auto sales anticipated.
• Trump's administration has framed the tariffs as permanent and a means to incentivize foreign manufacturers to establish production facilities in the United States.