The US-EU trade war is gathering pace. Following the imposition of 25% US import tariffs on steel and aluminium from March 12, President Trump has announced further plans to introduce “reciprocal” tariffs on all countries on or after April 1. This means that the US would match other countries’ import duties in a tit-for-tat manner, or as Trump put it, “they charge us, we charge them”.
Such measures would have a devastating impact on the EU’s auto industry, as Trump also aims for the new tariffs to mirror the EU’s Value Added Tax (VAT) and subsidies, potentially leading to a de facto 30% tariff on European cars entering the US.
