Trump's customs threats: rising prices and uncertainty for car fans!

Trump's customs threats: rising prices and uncertainty for car fans!

USA - The trade conflict between the United States and Europe could worsen again. US President Donald Trump has announced that the existing auto tariffs could possibly increase in the near future. This could have drastic effects on the German automotive industry, which is particularly badly affected by the tariffs. According to ZVW , a surcharge of 25 percent on imported cars and auto parts was raised, which strengthen the competitiveness of American manufacturers should.

The German and European automobile manufacturers, including some of the largest auto exporters in the world, face massive challenges. In 2023, around 445,000 vehicles worth $ 24.8 billion were exported to the USA, the largest customer market for German manufacturers. Increasing prices due to the tariffs could lead to a decline in demand, warn economists. Merkur reports of a forecast of the Kiel Institute for the World Economy, which has a decline in German Gross domestic product expected by 0.18 percent in the first year of tariffs.

The reactions from Europe

In response to the threats from Washington, there are already political demands for countermeasures from the European Union. Federal Minister of Economics Robert Habeck emphasizes that the EU will not give a small amount, while EU Commission President Ursula von der Leyen is planning a double strategy: negotiations with the USA and simultaneous counter-reactions on tariffs. Negative effects could also be felt by retaliation tariffs from the EU that may affect the exports of US products.

The companies in the automotive industry must now take labor -intensive measures to minimize the risks of the trade conflict. Transparency in your supply chains is essential to correctly determine the origin of the goods and thus avoid possible compliance violations. kpmg emphasizes that it can make sense for some companies to further process their products before exporting to the US

Future view and risks

The uncertainty in the trade environment forces companies to check their transfer price and customs value strategies. A close coordination with the suppliers and customers on both sides of the Atlantic is crucial to secure the goods traffic and avoid additional costs. The risk of a buyer strike in the USA also remains when the prices for vehicles rise. Experts warn that Trump's customs threats often serve as a means of pressure in negotiations, which could further complicate the situation.

Overall, it can be seen that the trade conflict between the USA and the EU not only affects the automotive industry, but could also have serious effects on the entire European economy. The next steps from Washington and Brussels will be crucial for the stability in international trade.