Jan Hagemejer on the Possible Impact of U.S. Tariffs on the Automotive Market

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1 Apr 2025

Jan Hagemejer

Jan Hagemejer

President of CASE Management Board
Jan Hagemejer’s areas of expertise are international trade as well as macroeconomic and structural issues. He graduated from University of Warsaw where he also obtained his PhD and habilitation, as well as from Purdue University (MA in Economics). He works as an associate professor at the Faculty of Economic Sciences, University of Warsaw. Prior to … <a href="https://case-research.eu/media_post/jan-hagemejer-on-the-possible-impact-of-u-s-tariffs-on-the-automotive-market/">Continued</a>

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Donald Trump is announcing tariff hikes on imported cars, arguing that the American economy has been “robbed” by foreign manufacturers. However, in practice, such a move will bring more losses than benefits, both for American consumers and producers.

Tariffs won’t stop rising car prices—new environmental regulations and increasing production costs are currently the main drivers pushing car prices up, not customs tariffs.

They won’t significantly harm European manufacturers in Poland’s context—the U.S. market is indeed important for German automakers, but for customers in Europe, tariffs might even lead to greater competition and price pressure.

U.S. car tariffs will have a negative effect on manufacturers, especially German ones for whom the American market is significant. However, I don’t expect them to cause price increases in Europe; on the contrary—they should force restructuring and productivity improvements in German companies,

Jan Hagemejer

President of CASE Management Board

According to Hagemejer, retaliatory tariffs introduced by the European Union could, however, impact the electric vehicle market. Both Tesla, which produces some vehicles in Europe, and Chinese EV manufacturers—already facing EU tariffs—are key competitors to European brands. As a result, “these cars are unlikely to become more accessible,” adds Professor Hagemejer.

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Jan Hagemejer on the Possible Impact of U.S. Tariffs on the Automotive Market

Jan Hagemejer

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