Leaders may first try to negotiate before imposing reciprocal tariffs, says Timothy Hellwig, an expert on European politics.
No automaker will be truly immune from the effects of the tariffs, but some will be in a particularly bad spot.
The auto tariffs will be felt sharply in Europe, for whom the U.S. is the biggest export market for an industry that supports nearly 14 million jobs.
European automakers, already struggling with tepid economic growth at home and looming Chinese competition, on Thursday decried the U.S. import tax on cars as a new, heavy burden that would hurt compa
The tariffs are an expansion of those Trump signed in 2018, when a 25 percent steel duty and a 10 percent aluminum levy went into effect. Over time, the first Trump administration and the Biden administration issued exemptions for a large number of U.S. trading partners. Those no longer apply.
An American Compass analysis attributes the quotas to an 8% increase in the cost of vehicles, more than 100,000 new U.S. jobs, eight new auto assembly plants, 300 new production facilities and more than $25 billon in foreign investment.
The first layoffs are already here, but a unified strategy remains elusive as automakers aren’t all in the same boat.
But Russia isn’t the only threat to democracy in Europe. Far-right and autocratic parties here have gained ground for a decade. They’re already part of the government in six capitals. And the impulse to ramp up defense may energize their voters.