Auto Industry Leader Urges EU to Fast-Track US Trade Deal Amid Protectionist Fears
Economy / Finance

Auto Industry Leader Urges EU to Fast-Track US Trade Deal Amid Protectionist Fears

Amid renewed concerns regarding potential tariffs from the United States, Hildegard Müller, the head of the German Association of the Automotive Industry (VDA), has urged the European Union to implement the trade agreement that was settled in the summer of 2025. Speaking to “Redaktionsnetzwerk Deutschland” Müller emphasized, “The trade agreement established between the EU and the United States must be honored by both sides”. This means the EU must now finally execute its portion of the commitments made last summer. She called on both sides to de-escalate and engage in expedited discussions.

Müller stressed that the ability of the region’s production sites to remain competitive rests with policymakers in Berlin and Brussels. She criticized the current pace of action, stating that too little is being achieved. “Instead, the EU is discussing too much regarding self-containment and protectionism” she remarked. However, she cautioned that isolationist policies always risk intensifying trade conflicts, which could significantly harm Germany’s export-oriented economy and the automotive sector. She appealed instead for a focus on open markets, stating, “We need more open markets, not fewer”. For instance, she pointed out the excessive delays Europe has experienced with crucial trade agreements, citing the case with Mercosur in Latin America.

When asked whether a revision of the CO2 emission standards by Brussels could salvage the German automotive industry, Müller countered the notion of needing rescuing. “We do not need to be saved” she stated. She affirmed the industry’s commitment to investing and producing within Germany and Europe, thereby continuing to contribute to growth, prosperity, and employment. Finally, she offered a holistic view of the industry’s future, noting that while electric mobility will largely define the future, “all drives will be used worldwide”.