Trump plans tariffs and tax cuts: cars under pressure!

Trump plans tariffs and tax cuts: cars under pressure!

US President Donald Trump continues to pursue his aggressive tariff policy to reduce the US trade deficit and attract companies to the US. He has announced that he will impose tariffs on imported auto parts needed for production in the United States, but with the aim of reducing these burdens on affected companies. Small newspaper reports that details of the changes are scheduled to be released on Tuesday, April 29, 2025.

In addition to tariffs, Trump plans to cut taxes and reduce regulations for companies. Car manufacturers such as Ford and GM have already welcomed the planned measures. Ford CEO Jim Farley said the changes would mitigate the tariffs' negative impact on producers and consumers. GM CEO Mary Barra emphasized that the new regulations would create a more level playing field and encourage investment in the United States.

Global impacts and reactions

However, Trump's tariff policy is causing concern around the world. The tariff war with China and the EU states has already fueled fears of a possible economic slowdown, particularly in the USA. Experts warn that the US could be hardest hit. In a report from ZDF It is mentioned that the aggressive tariff policy could potentially trigger a major trade war, the consequences of which cannot be foreseen. The tariffs are ultimately borne by importers, which poses increased challenges for US customs authorities.

Trade relations between the US and Europe are also tense. Trump has rejected the EU's offer to eliminate industrial tariffs and continues to threaten higher tariffs for China. On the European side, there are already considerations about imposing counter tariffs on US products such as motorcycles and jeans. The EU tariff on American cars is currently 10%, which Trump has criticized. These customs disputes could also further strain the relationship between the USA and the EU.

Transatlantic relations and future cooperation

After Trump's re-election in November 2024, the European Parliament discussed the possible impact of his policies on transatlantic relations. European Parliament highlights that leading MEPs called for continued cooperation to address the challenges posed by Trump's tariff measures.

EU Commissioner Maroš Šefčovič criticized the tariffs as harmful to companies and consumers. Bernd Lange, chairman of the Committee on International Trade, also highlighted the possibility of counter-tariffs to respond to the aggressive tariff policy of the USA. The European Parliament is ready to actively contribute to strengthening transatlantic relations in order to promote a rules-based, fair trade policy.