Auto tariffs at 25%: Trump maintains pressure on foreign vehicles, hints at a China deal, and leaves Europe in uncertainty
The trade war between Trump, the EU, and China is intensifying, with statements, diplomatic overtures, and growing tensions. The auto sector remains a critical battleground between the West and the East.
Auto tariffs at 25%: Trump’s persistent stance
“Auto tariffs at 25%.” This remains the refrain of President Trump regarding the imminent taxation—set to take effect on April 2—on foreign vehicles imported into the U.S., including those made in the EU. Meanwhile, the EU has reduced its auto tariffs from 10% to 2.5%, following Trump’s emphasis on the U.S. trade deficit, which reached $235 billion in 2024.
Auto tariffs: Trump signals openness to China
While these bold announcements have already impacted Europe, Trump, aboard Air Force One, hinted at a possible new trade deal with China. This follows the imposition of a 10% auto tariff, which also extends to other imported goods.
China holds the largest trade surplus with the U.S., amounting to $295.4 billion in 2024, according to the Bureau of Economic Analysis. Given this, Trump expects a meeting in Washington with Chinese President Xi Jinping, who last visited the U.S. in 2023 and spoke with Trump by phone just before his inauguration on January 20.
Auto tariffs: Beijing rejects Trump’s trade war
China’s response was swift. While open to resolving trade disputes through dialogue, Beijing reaffirmed its commitment to “taking all necessary measures to safeguard its legitimate rights and interests.” This statement came from Foreign Ministry spokesperson Guo Jiakun after Trump suggested the possibility of a new trade deal.
According to China, “trade wars and tariffs create no winners and harm the interests of citizens in all countries,” Guo added, emphasizing Beijing’s opposition to “unilateral tariff impositions by the United States” and its call for “equal dialogue and negotiations.”
Citing sources from The Wall Street Journal, reports suggest that China is considering reviving a 2020 trade agreement from Trump’s first term, which was never fully implemented. The deal included a commitment from Beijing to increase purchases of U.S. goods and services by $200 billion over two years, aiming to rebalance U.S. trade flows.
And Europe? What comes next?
China claims it has “done its best” to negotiate with the European Union regarding tariffs imposed by Brussels on Chinese-made electric vehicles, according to Ministry of Commerce spokesperson He Yadong. This follows an EU anti-subsidy investigation that led to tariffs as high as 45.3% on electric cars imported from China.
“We hope Brussels acknowledges the concerns of the industry and fosters bilateral cooperation on investments through dialogue and consultation,” He Yadong stated.
In response to the EU’s tariff decision, China launched anti-dumping and anti-subsidy investigations last year on European products such as brandy, dairy, and pork.
