Trump Against the Engines of the World - Why His Tariff Campaign Could Also Shake Germany

When Gretchen Whitmer entered the Oval Office on Tuesday, she did so with a message the President of the United States did not want to hear. The Democratic governor of Michigan, considered in her home state as a possible presidential candidate for 2028, had a clear mission: to convince Donald Trump that the very industry he claims to be saving is suffering under his trade policy - and that his tariffs are threatening jobs in her state. Whitmer did not come empty-handed. Under her arm she carried a visual presentation, slides with figures and charts documenting the economic pressure on Michigan's auto industry. Securing such a meeting with the Republican president was in itself a political success - and a balancing act. Like many Democratic governors, Whitmer must navigate between open opposition to Trump's agenda and the duty to defend her state's interests. Unlike many of her party colleagues, she also relies on direct, personal talks with Trump.

It was already the third time since Trump took office in January that she had appeared at the White House. But this meeting differed from the previous ones - no media circus, no awkward appearance like in April when she stood next to Trump at an improvised press conference and hid her face behind a folder in embarrassment. This time the exchange was discreet but substantively explosive. Whitmer not only addressed the tariffs, the effects of which on Michigan could be "devastating", but also federal funds for coping with a severe ice storm and the looming cut to Medicaid. Trump listened without making concrete commitments. But Whitmer is not the only one sounding the alarm. Executives, economists and unions have been warning for months: the punitive tariffs could lead to plant closures, profit slumps and price increases - and thus shake the economic foundation of an industry that is symbolically and literally deeply rooted in the self-image of the United States.

The White House rejects this criticism. Spokesman Kush Desai declared that no president had ever done more to restore the dominance of the US auto industry than Trump. New trade agreements would facilitate access to markets in Japan, Korea and Europe, which was supposed to strengthen Michigan's automakers. In practice, however, Trump prefers high-profile meetings with tech companies: only the day before, Apple CEO Tim Cook had presented him with a personalized glass plaque in the Oval Office and promised investments of 600 billion dollars - figures that so far have not been reflected in any official economic statistics. The reality for US automakers is currently less rosy. Trump's order calls for import taxes of 50 percent on steel and aluminum, 30 percent on parts from China and up to 25 percent on goods from Canada and Mexico that are not covered by the 2020 trade agreement. While German, Japanese and South Korean vehicles are subject to only a 15 percent tariff under a deal negotiated in July, US manufacturers face significantly higher costs. Added to this is the threat to tax computer chips - a key component of modern vehicles - at 100 percent unless they are produced domestically.

A lot is at stake for Michigan. Since 2020, trade with Canada and Mexico has brought 23.2 billion dollars in investments into the state. General Motors, Ford and Stellantis operate 50 plants, and over 4,000 suppliers ensure parts production. In total, almost 600,000 jobs depend directly or indirectly on the auto industry. Whitmer handed Trump documents substantiating all of this - and showing that since his return to the White House, 7,500 manufacturing jobs in Michigan have been lost. Corporate leaders are also sounding the alarm. Ford put the burden of tariffs in the second quarter alone at 800 million dollars, General Motors at 1.1 billion. Such sums, the companies argue, make it harder to invest in new US plants - one of Trump's stated goals. Ford CEO Jim Farley spoke openly of a "headwind" of two billion dollars for this year alone. But the tariffs are not only hitting the big players. Medium-sized suppliers like Detroit Axle feel the pressure directly. The family-owned company initially warned of the closure of a warehouse and the loss of over 100 jobs, but was able to keep operations going for now. Company head Mike Musheinesh sums up the situation soberly: "The market is not deciding right now who can thrive, but who can survive at all."

For observers like political scientist Matt Grossman of Michigan State University, one thing is clear: "Michigan is a key state - economically, politically and symbolically. If the tariffs fail, the political price could be high." Concern is also growing in Germany and Europe. The auto industry in both cases is not just an industrial sector but the backbone of entire economies. In Germany, over 800,000 jobs depend directly on vehicle production, and millions more on the supplier and service chain. Volkswagen, BMW, Mercedes-Benz - they all export on a large scale to the United States. Should Trump's tariffs also target European manufacturers or indirectly raise their costs, there could be tangible consequences for sites from Wolfsburg to Stuttgart. The federal government and the EU Commission are so far trying to counter this through diplomatic means. In Brussels, targeted trade agreements and exemptions are being negotiated, while Berlin is relying on bilateral talks to avoid escalation. At the same time, the EU is examining compensation measures for affected industries - such as investment incentives for the domestic market or state guarantees for suppliers. But insiders warn: if Washington escalates the tariff course, these steps may not be enough to secure the competitiveness of European manufacturers. Trump's policy could thus slow down not only the engine of the US economy but also the heart of German industry. The tariff dispute between Washington and Brussels would then be far more than a trade conflict - it would be a geopolitical struggle for industrial supremacy in the 21st century.

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