Germany said that it “would not give in” and that Europe must “respond firmly” because US President Donald Trump targets imported cars and car parts with a 25% tax in his last rates.
Other major global economies have promised to retaliate, with the brand in France, this decision of “very bad news”, Canada calling it a “direct attack” and China accusing Washington of raping international trade rules.
Early Thursday, Frankfurt’s actions for Porsche, Mercedes and BMW fell strongly alongside the French firm Stellantis, the manufacturer of Jeep, Peugeot and Fiat.
Trump has threatened to impose “much more important” prices if Europe works with Canada to do what it describes as “economic damage” in the United States.
Fresh car rates come into force on April 2, with costs on companies that import vehicles from the next day. Parts taxes should start in May or later.
Trump has long maintained that prices are part of a campaign to help us make and says that if the cars are made in America, there will be “absolutely no price”.
Prices are taxes billed on goods imported from other countries.
Although the measures can protect national companies, they also increase costs for companies that depend on foreigners.
Societies that bring foreign goods to the country pay tax to government. Companies can choose to transmit part or all of the cost of prices for customers.
The United States imported approximately eight million cars last year – representing approximately $ 240 billion (186 billion pounds sterling) and about half of the overall sales.
Mexico is the best car supplier in the United States, followed by South Korea, Japan, Canada and Germany.
Analysts estimated that the right parts in Canada and Mexico could result in cost increases from $ 4,000 to $ 10,000 according to the vehicle, according to Anderson Economic Group.
The German Minister of Economy, Robert Habeck, said that the European Union should “answer firmly”.
“It must be clear that we will not give in to the United States. We must show force and self-confidence,” he added.
France supports this joint approach, its Minister of Finance, Eric Lombard, saying that the “only solution” in Europe is to retaliate with prices on American products.
“We are in a situation where we are targeted. Either we accept it, in which case this will never stop, or we will answer,” added Lombard.
He underlined the need to “rebalance the rules of the game” so that the United States is “forced to negotiate”.
Canadian Prime Minister Mark Carney described the “direct attack” prices against his country and his automotive industry, adding “we will hurt” but commercial options have been discussed.
Meanwhile, China accused Trump of having violated the rules of the World Trade Organization.
“There are no winners in a trade war or a pricing war. No development and prosperity of the country has been carried out by imposing prices,” said a spokesperson for the Ministry of Foreign Affairs.
There are Japan warnings that there will be a “significant impact” on the economic relationship it shares with the United States. A government spokesperson described measures as “extremely regrettable” and said the officials asked for an exemption in the United States.
In South Korea, a day before the last sample, Hyundai announced that it would invest $ 21 billion (16.3 billion pounds sterling) in the United States and build a new steel plant in Louisiana.
Trump praised the investment as a “clear demonstration that prices work very strongly”.
BOSCH – Based in Germany – says he has confidence in the “long -term potential” of the North American market and will continue to expand its activities.
