Dice of 25% on all cars and car components of foreign manufacture imported to the USA starting from April 2: this is the new announcement of the president Donald Trump – who said “is the beginning of the liberation of America” - in the context of the commercial war that began by the USA against the rest of the world. The new tax will be added to the barriers of 2.5% already present on foreign cars and al 25% existing on light trucki.e. light trucks that weigh less than 3860 kg. The decision triggered a wave of concern and indignation from the main actors of the automotive sector and governments around the world, with Europe at the forefront of denouncing the probable negative repercussions on companies and consumers (starting from the US ones) and which is starting to ventilate the hypothesis of any counter -foreign. Analysts foresee a Increase in the average prices of vehicles in the United States between $ 5000 and 10,000 dollars. Furthermore, this impact will not be limited to imported cars only, but could also extend to the vehicles produced in the United States, given the strong interdependence of the global supply chains and the relocation of many components.
Hard blow to the German automotive
In 2024 the European homes sent to the United States vehicles for a value of 38.4 billion euros. The country, in fact, is the main export market for cars produced in the European Unionabsorbing almost a quarter of the total exports of the sector, the imposition of the duties of 25% is therefore a serious blow for the European car industry, in crisis practically all member countries. Starting from Germany, where the crisis of major brands such as Volkswagen is now a political case: just think that in mid -March the company has announced a cut of more than 7500 employees in its German plants. Mercedes-Benz Group and BMW also appear particularly exposed, with the risk that the new duties reduce their competitiveness on the US market, leading to a decrease in sales and potential repercussions on investments and employment in Europe. According to estimates, Volkswagen produces only 20% of cars in the country in the United States and imports 80%, Mercedes-Benz matters 63% and BMW 52%.
Serious repercussions in Europe and the United States: the companies affected
Germany is not the only European country that risks paying a very high price for Trump’s latest attack on the free market. For example, the Jaguar Land Rover group, British but owned by the Indian group Tata, has no factories in the United States and must import 100% of the car sold on that market. Also for the Stellantis group – which controls controls the ABARTH, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram Trucks and Vauxhall – control brands. It produces only 55% of the cars sold in the United States every year. «The announced US additional duties of 25% on all cars and light commercial vehicles not manufactured in the United States send a Fatal signal for free trade and based on rules»He declared on Wednesday 26 March Hildegard Müller, president of the German car industry association (VDA)“concluded Müller.
Also Tesla by Elon Musk, Trump’s right arm, despite being a US company, has lost several percentage points on the stock exchange following the announcement of the US president, but according to some it would be possible that in the long term the company can be advantaged from the establishment of the new car duties.
The impact for Mexico and Canada
Sonds to Trump’s last decision have also arrived from Canada and Mexico, already heavily targeted by a commercial war on their goods that has been continuing for weeks now, including continuous announcements, suspensions and confirmations of duties. The new Canadian premier Mark carneywho recently took the place of Justin Trudeau, commented on the last duties talking about violation of the exchange agreements of the NAFTA (North American Free Trade Agreement). For Canada, in fact, cars and components represent 10% of the manufacturing sector and 125,000 jobs. The situation for the Mexicowhich owes to car sector 5% of its GDPone million jobs and an export that is worth 181 billion dollars, largely absorbed by the United States. Donald Trump replied to the concerns all of the world, claiming that the new duties will lead to a growth in the automotive sector in United States. A country that At the moment it matters half of all the vehicles it buys and 60% of the cars parts that are assembled in its factories. As experts point out, however, this would require an investment of billions of dollars in new long -term production and industrial prunic plants, to which, however, the US president has not mentioned.
