Germany leads defiance to Trump car tariffs, saying it ;will not give in

Germany has stated it "will not give in" to US tariffs. The country believes Europe must "respond firmly." President Donald Trump is targeting imported cars and parts with a 25% tax.

Other major economies are planning to retaliate. France's president called the move "a waste of time." Canada labeled it a "direct attack," while China accused the US of breaking trade rules.

Carmaker stocks fell globally. In the US, General Motors dropped 7%. Ford's stock fell by more than 2%.

Trump has warned of "far larger" tariffs if Europe collaborates with Canada. He claims this would cause "economic harm" to the US.

The new car tariffs will start on April 2. Charges for businesses importing vehicles will begin the next day. Taxes on parts are expected to start in May or later.

Trump argues that these tariffs aim to boost US manufacturing. He insists that if cars are made in America, there will be "absolutely no tariff."

Tariffs are taxes on goods imported from other countries. They can protect domestic businesses but raise costs for companies relying on foreign parts.

Importers pay these taxes to the government. Companies may pass some or all costs onto customers.

Last year, the US imported about eight million cars. This accounted for roughly $240 billion in trade and half of overall sales.

Mexico is the largest supplier of cars to the US, followed by South Korea, Japan, Canada, and Germany. Analysts estimate that tariffs could increase vehicle costs by $4,000-$10,000 depending on origin.

German Economy Minister Robert Habeck emphasized that the EU must respond firmly. He stated they should show strength and self-confidence against the US.

France supports this approach as well. Its finance minister said Europe should retaliate with tariffs on US products.

French President Emmanuel Macron noted it was "not the time" for such tariffs. He warned that imposing them would disrupt value chains and create inflationary effects.

Macron added that this approach is a waste of time and urged Trump to reconsider his decision.

Canadian Prime Minister Mark Carney described the tariffs as a "direct attack" on Canada's car industry. He acknowledged it would hurt Canada but mentioned ongoing discussions about trade options.

In the UK, car industry body SMMT found the announcement disappointing but not surprising. Uniparts founder John Neill claimed Trump's tariffs were "a gift to China."

China accused Trump of violating World Trade Organization rules. A foreign ministry spokesman stated there are no winners in a trade war or tariff war.

Japan warned of a significant impact on its economic relationship with the US. A government spokesman called these measures "extremely regrettable."

South Korea's Hyundai announced plans for a $21 billion investment in the US before new levies took effect. They plan to build a new steel plant in Louisiana.

Trump praised this investment as proof that tariffs work effectively. Bosch, based in Germany, expressed confidence in North America's long-term market potential and plans to expand there.

The International Monetary Fund does not predict a US recession but warns about potential adverse effects from a trade war on Canada and Mexico's economies.