As reported by the New York Times, the White House announced imposition of a 25% duty on foreign-made cars, sparking concern among European exporters. The decision affects the key sector of the EU economy and creates risks for the German automotive industry as a huge part of its production is sold in the United States.
According to the NYT publication, European companies are expecting significant financial losses in the face of new trade barriers. Meanwhile, the BMW head Oliver Zipse said that the escalation of trade tensions will result in negative consequences for all sides of the dispute, leaving no winners in this situation.
Considering the possibility of retaliation, the European Union is preparing to impose its own duties against a broad range of US goods. The region's authorities keep in mind the previous experience of trade disputes that arose during Donald Trump's first term as US president, and seek to minimize the negative consequences for their economies.