Transatlantic Turmoil: How US Import Taxes Threaten European Auto Industry

European automakers are concerned about the new 25% US import tax on cars, which they argue will burden consumers and economies on both sides of the Atlantic. The industry is already struggling with slow growth and competition from China. German and Italian manufacturers are particularly at risk.

European automakers are voicing strong opposition to the recent imposition of a 25 percent US import tax on cars, a policy they say will impact consumers and manufacturers globally.

The European Automobile Manufacturers' association decried the move, claiming the tariffs will adversely affect both the global automotive industry and American manufacturing infrastructure. German automotive leaders echoed these sentiments, warning of widespread repercussions on interconnected supply chains and potential negative effects on North American consumers.

With the US representing a critical export market—56 billion euros in 2023—Germany and Italy are particularly vulnerable, risking significant economic fallout. The European Union and the US face mounting pressure to negotiate a resolution that avoids a trade war and mitigates economic damage. Analysts warn that the blockade could significantly impact European GDP and jeopardize millions of jobs across the continent.

(With inputs from agencies.)