A leading German automotive expert has warned that the U.S. imposition of 25-percent tariffs on all imported automobiles poses a significant threat to the auto industry in Germany, the world's fifth-largest car exporter to the United States.
U.S. President Donald Trump has signed an executive proclamation to impose 25-percent tariffs on all imported automobiles taking effect from April 2. Imported auto parts will also be subject to the new tariffs, with implementation no later than May 3.
In an interview with China Media Group on Tuesday, Ferdinand Dudenhöffer, director of the Center for Automotive Research, an automotive research center based in Duisburg, expressed grave concerns about the impact of these tariffs, particularly on German automakers. "What Trump is doing now poses a huge threat and causes damage to the German automotive industry. Porsche and Audi are particularly affected because they do not manufacture in the United States. They have to reduce prices, which will lead to a decline in profits or even losses. Sales in the United States will also decrease, which means that Porsche and Audi will suffer great losses. Others like Volkswagen, Mercedes-Benz, and BMW would also suffer," he said.
Dudenhöffer said the tariff threat is a clear indication of the Trump administration's aggressive trade protectionism, describing the move as an attempt to ignite a trade war.
"Trump is aggressive and is trying to start a trade war against everyone. He wants to bring jobs back to America from other countries. He also wants to grab natural resources from Greenland or Ukraine. This will only cause damage," he said.
U.S. tariffs pose huge threat to German auto industry: expert
