A new round of customs tariffs from President Trump sent shock waves through global markets, wiping billions of euros of the value of the main European car makers and dealing with a new blow to the UK car sector.
Trump's decision was taken to impose a 25 percent tariff on all imports of car and parts in the United States – which will bear in effect on April 2 – sharp sales in global stocks, with car manufacturers.
The shares in German giants, Mercedes-Benz, BMW, Porsche, Volkswagen, between 2 percent and 5 percent, while Stellantis-the parent company of Vauxhal, FIAN, Citroen and Peugeot-decreased by 6 percent in Paris. In London, the luxury car maker Aston Martin decreased by 4.47 percent, leading to a decrease of FTSE 100 by 0.6 percent to 8638.04. DAX lost 1.42 percent in Germany and CAC 40 fell in France by 1 percent.
It was not the repercussions of Europe. In trading hours in the United States, General Motors decreased by 8 percent and Ford 3.7 percent. Asian markets followed their example, with a decrease in Toyota, Nissan, Mazda, Hyundai and Kia, while Tata Motors – the father of Jaguar Land Rover – decreased by 5 percent on the stock exchange in India.
The new definitions threaten the vital lifestyle of the UK auto industry. The United States is the second largest export market for cars in the United Kingdom, as it represents nearly 17 percent of the total exports, or about 79,000 cars in 2024, according to the SMMT. Exports to the United States increased by 38.5 percent last year, even when exports to the European Union decreased and China decreased sharply.
Nissan, which runs the largest car factory in the UK in Sunderland, exported more than 73,000 cars to the United States last year – by 10 percent of its total production in the UK. Meanwhile, Marquis is a luxury as Rolls -Royce, Aston Martin and McLaren, on American sales.
SMMT has warned of exporting approximately eight out of every ten cars made in Britain, with any disruption of international trade, which pose a serious threat to restore industry.
Even before the definitions were announced, British car production was struggling. Production decreased by 11.6 percent in February, representing the twelfth consecutive month of declines, according to SMMT data, which was issued overnight.
President Trump defended the definitions, claiming that the United States was “the pig that is stealing it with everyone.” It sees definitions as a tool to increase revenues to pay for tax cuts and revive the local industry – even with economists against high prices, disrupting the supply chain, and reprisal trade procedures.
Trump threatened even the most severe customs tariff if commercial partners responded. He warned, “If the European Union and Canada are cooperating for revenge, we will go further.”
In response, Canadian Prime Minister Mark Carne condemned the definitions as a “direct attack” and pledged to defend national interests, while Japan and South Korea indicated emergency responses. European Commission President Ursula von der Lin said that the European Union will continue to follow “negotiating solutions while protecting its economic interests.”
In the United Kingdom, Chancellor Rachel Reeves Times told Radio that the talks are underway to secure a trade agreement with the United States to avoid definitions. However, economists have warned that even if the UK is directly included, harmful effects may be harmful.
“There is a growing awareness that we could be in a major trading blow that was not present a few weeks ago,” said David Miles, an economist at the Budget Responsibility Office.
OBR now expects that if global trade tensions escalate to a full tariff war-with a high average import duties by 20 percentage points between the United States and its partners-the GDP in the UK can shrink up to 1 percent at its peak.
With an effective tariff of April 3 and more reprisal measures on the horizon, the threat of a large -scale trade war grows. For UK and Europeans who are already subjected to pressure, Trump's move could not have come in a worse time.