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Trump's 25% tariffs: Danger for the auto industry and rising prices!
US President Trump imposes 25% tariffs on cars and parts and threatens further increases. Impact on industry and prices.
Trump's 25% tariffs: Danger for the auto industry and rising prices!
US President Donald Trump took a drastic measure to keep the automotive industry on its toes by introducing tariffs on imports of cars and car parts. The newly imposed surcharge is a whopping 25 percent and came into force at the beginning of April 2025 for finished cars and at the beginning of May 2025 for car parts. Particularly notable is Trump's announcement that he is considering possible increases in these tariffs in the near future. This threat could encourage foreign automakers to set up production facilities in the United States to avoid tariffs, such as t-online.de reported.
With this approach, Trump repeatedly shows that he uses trade tariffs as a means of pressure in negotiations. This is not the first time that he has imposed high punitive tariffs on foreign products, but the industry is now expressing concern about the potential negative consequences and the threat of price increases that could result from these tariff measures.
Impact on the auto industry
The introduction of the tariffs and the threatened increases could mean that manufacturers who assemble their vehicles in the USA can have part of the tariffs on auto parts refunded. This could encourage some companies to relocate production to the US to remain competitive.
However, the industry warns of possible price increases for consumers. These tariffs could significantly increase the cost of imported vehicles and parts, which would ultimately increase final prices for customers. The importance of this measure is being watched not only in the US but also internationally as it could have a significant impact on global automotive trade.
In summary, the tariffs imposed by Trump not only target the US economy, but also provoke political and economic reactions at the international level. The coming weeks and months will be crucial in determining how the auto industry responds to these challenges and whether Trump is actually willing to change course or consider further tariff increases.