A chorus of outrage and disbelief is rising from industries across Europe in response to Donald Trump’s latest tariff threats, with Germany’s powerful auto sector leading the charge. The German auto trade body, the VDA, described a new 25% US tariff on heavy-duty trucks as “incomprehensible,” encapsulating the frustration felt throughout the continent.
The VDA warned that the protectionist measure would backfire, hurting US jobs and investment while disrupting global supply chains. This sentiment was echoed in the stock market, where shares of major truck manufacturers like Daimler and Traton fell sharply. The unified condemnation from the auto industry highlights the deep economic integration between Europe and the US, which these tariffs now threaten to unravel.
While German industry focused on trucks, the UK was consumed by the threat of a 100% duty on its pharmaceutical exports. The British government called the situation “concerning” and initiated urgent diplomatic talks. This has created a shared sense of crisis, as different sectors in different countries find themselves simultaneously targeted by the same wave of US protectionism.
Even companies seemingly protected by existing agreements are feeling the pressure. Sweden’s Ikea, which is covered by the EU’s 15% tariff deal, stated that the trade barriers were making business with the US “more difficult.” This suggests that the overall climate of hostility and uncertainty is having a chilling effect on transatlantic commerce, regardless of specific tariff rates.
The only potential bright spot in this gloomy picture is the belief among some analysts that the tariffs are targeted and will spare companies that manufacture in the US. However, this “America First” logic provides little comfort to the vast majority of European businesses that rely on exports. Their unified outrage signals a growing resolve to push back against policies they see as both unfair and economically destructive.
“Incomprehensible”: Europe’s Industries Unite in Outrage Over New US Tariffs
8