Hildegard Müller, described the US decision to impose tariffs on cars as "a fatal signal for free, rules-based trade." The decision affects a key export market for German manufacturers at a time when they are grappling with declining profits.

Germany has said it "will not give in" and that Europe must "respond firmly" as US President Donald Trump targets imported cars and car parts with a 25% tax in his latest tariffs. Other major world economies have vowed to retaliate,

Shares in some German automakers and suppliers were indicated lower in pre-market trade on Thursday after U.S. President Donald announced 25% tariffs on imported vehicles, a move that threatens to hurt Germany's already struggling auto industry.