USA introduces high tariffs on imports - Europe and automotive sector particularly affected

On April 2, 2025, Mr. Trump, President of the United States, decided to impose minimum tariffs on imports of all countries at a rate of 10% for all countries, with higher rates imposed on imports from countries that he deems being “unfair” to the USA. This general rate takes effect at midnight on April 5, 2025, Eastern Standard Time. The American president also imposes allegedly “reciprocal” tariffs of 20% on all products arriving on American territory from the European Union but tariffs of 25% will be applied to aluminium and steel. The reciprocal tariffs will take effect at midnight on Wednesday, April 3, 2025.

These tariffs affect all sectors, but one of the most affected in Europe is the automobile sector, particularly in Germany: cars will now be taxed at 25%. The most affected sector in France are aeronautics, with 7.9 billion euros of exports in 2023, pharmaceuticals with 4.1 billion euros in 2023 and alcohol (especially wine) with 3,9 billion.

In addition, differentiated and higher tariff rates will apply on goods from the French overseas territories: Guadeloupe, Mayotte, Guyane and Martinique will be subject to a 10% tax in addition to the 20% levied on the rest of France, while Réunion will be subject to a total tax of 37%. Tariffs of 50% will be imposed on products from Saint-Pierre-et-Miquelon and 10% on those from French Polynesia, as these islands have not been considered part of the EU by Trump.

Commission President Ursula von der Leyen said she was ready to negotiate but was also ready for confrontation if necessary to assert the EU's interests and values. She said that the Commission is working on countermeasures. Several European heads of state are also working on measures to be adopted.

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Prof. Dr Rainer Bierwagen
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