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Trump’s 25% automobile tariffs take effect amid global backlash

Steep US tariffs on imported automobiles took effect on Thursday, April 3, escalating trade tensions with key global partners.

The 25% levies on foreign-made cars and light trucks were implemented at 12:01 a.m. (0401 GMT), according to a Federal Register notice.

Additional tariffs on automobile parts are expected by May 3.

German Auto Industry Condemns Trump’s Tariffs

The move has drawn sharp criticism from the German Automotive Industry Association (VDA), which represents Germany’s powerful auto sector.

In a statement released Thursday, the VDA warned that the tariffs “will only create losers,” with American consumers facing significant price hikes.

“This is not America first; this is America alone,” the VDA declared, suggesting that the decision marks a departure from the global trade order.

The association urged the European Union to respond decisively while keeping negotiation channels open.

It also called on the incoming German government to take a leading role in advancing free trade deals.

EU mom on Trump's announcement

The EU has yet to announce countermeasures, but analysts predict a swift response as European automakers brace for potential losses.

Germany’s auto exports to the US account for a substantial portion of its industry, making the tariffs a major economic concern.

Trump justifies tarrif move

Meanwhile, President Donald Trump defended the move during a White House Rose Garden address on “Liberation Day.”

He assured that the new tariffs would ultimately benefit the US economy by promoting domestic manufacturing.

“These measures will protect American jobs and industries,” Trump stated, dismissing concerns about retaliatory actions.

With trade tensions intensifying, all eyes are on the EU’s next steps. Observers say the bloc could either negotiate or impose countertariffs, potentially deepening the transatlantic trade rift.

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