The vast majority of U.S. auto imports come from Mexico, Japan, South Korea, Canada, and Germany. So far, all have expressed their alarm over the new tariffs, but only some are threatening payback.
Mexico
No country exports more automobiles to the U.S. than Mexico, and so far, Mexican government officials appear to be avoiding any retaliatory rhetoric. Mexican economy minister Marcelo Ebrard said Thursday that the country was continuing to negotiate with the U.S.: “If they are going to change the system, if we are going to a system of such high tariffs, what we have to seek is a preferential treatment for Mexico in a way that we have conditions that protect our jobs and economic activity in Mexico.”
Canada
“We will fight the U.S. tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada,” Canadian prime minister Mark Carney said Thursday. “We will defend our workers. We will defend our companies. We will defend our country.” On Wednesday, Carney announced a $2 billion CAD “strategic response fund” to buoy Canada’s auto industry.
Ontario premier Doug Ford is ready to retaliate, too: “We’re going to make sure that we inflict as much pain as possible to the American people without inflicting pain on the Canadian population,” he said Wednesday, adding that he will meet with other Canadian premiers about how, specifically, to respond. He has previously vowed to implement retaliatory electricity tariffs on the U.S., but says he will wait to see what happens on April 2 before deciding on that.
South Korea
South Korean industry minister Ahn Duk-geun held a meeting with auto-industry officials on Thursday and said that the government would try to negotiate with the U.S. to protect the industry, and that it was planning an emergency response to assist South Korean companies should the tariffs have an impact.
Japan
Japanese prime minister Shigeru Ishiba decried the auto tariffs on Thursday and said that Japan was considering its response. Though he insisted that “every option” was on the table, auto-industry analysts agree that Japan’s options for retaliation are more limited than other countries.
Europe
Germany and France are both calling for retaliation. On Thursday, the German economy minister Robert Habeck called for a “firm” response from the E.U. “It must be clear that we will not give in to the US. We need to show strength and self-confidence,” he said. French finance minister Eric Lombard, who has previously called Trump’s trade warring “idiotic,” said Thursday that the E.U. is preparing a list of retaliatory tariffs, which he said was the “only solution” to Trump.
