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German carmakers struggle with looming US tariffs

04:22

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Christian Pricelius
February 26, 2025

The US has already slapped new tariffs on cars from China and is threatening to do the same to imports from Canada, Mexico and Europe. Yet tariffs don't just harm non-US carmakers and international trade, they hurt American consumers, too.

Upon taking office, US President Donald Trump pushed for higher tariffs to reduce imports and boost American jobs. The tariffs, especially on steel, aluminum, and cars, would impact foreign automakers, with Germany being significantly affected. German automakers have built factories in the US to avoid tariffs, but higher tariffs would still harm both sides. Trump temporarily withdrew tariff threats on Mexico, opting for negotiations to reduce the US trade deficit. Europe might reduce tariffs on US imports or tax US digital services in response to Trump's tariff strategy.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

 

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