American Customs Noose For Vehicles Made In Germany

The Ministry of Economy of Germany announced that it is in contact with the European Commission, which is talking to Washington, on the occasion of the US President Donald Trump’s announcement that he will increase the customs duty on the import of cars from the European Union.

“We will coordinate closely within the EU on the next steps,” reads the ministry’s announcement, which emphasizes the need for a joint response to Trump’s decision.

Trump has announced an increase in tariffs to 25 percent (instead of the previously agreed 15) on cars and trucks from the EU, claiming that the EU has failed to meet the 2025 “Turnberry Agreement” with each other.

German Economy Minister Robert Habeck said that Europe “will not give in” and must “react firmly” to the new tariffs, calling them “a serious burden on transatlantic relations”.

The German Institute for World Economics (IfW) in Kiel predicts that this increase in tariffs could cost Germany almost 15 billion euros. Long-term losses could increase to 30 billion euros, which risks a potential recession in Germany.

The German Association of the Automotive Industry (VDA) described Trump’s move as a “fatal signal” for free trade and called for urgent negotiations between the US and the EU.

The European Commission has announced it will keep all options open for retaliation, raising concerns about a wider transatlantic trade war.

It was preceded by a worsening of the relationship between Trump and German Chancellor Friedrich Merz due to an open dispute about the US war against Iran, and then Trump announced the withdrawal of American soldiers from Germany.

• Also See: Americans Are Upset That Their Large Pickup Trucks Will Not Be Imported Into Europe