German automotive leaders are issuing a stark warning against further escalation in the ongoing trade dispute between the United States and the European Union.
Hildegard Müller, President of the German Association of the Automotive Industry (VDA), urged both sides to rapidly find a resolution in an interview with “Bild” newspaper. She highlighted the significant financial strain already impacting German automakers due to US tariffs implemented in April, stating that the costs are now measured in billions of euros.
Müller expressed concern regarding the EU’s potential retaliatory tariffs which target the automotive sector. She emphasized the importance of strategic and considered action, asserting that counter-tariffs should not further burden European industry. Highlighting the interconnectedness of the transatlantic automotive market, Müller pointed out that approximately two-thirds of US automotive exports to the EU originate from German manufacturers. Any further tariffs would be detrimental. According to Müller, each additional one percent tariff increase would add approximately 100 million euros annually in costs for German manufacturers.
Müller further stated that the conflict necessitates broader strategic conclusions for the EU. She emphasized understanding the U.S. administration’s objective of reindustrializing the nation through trade policy. This situation should incentivize the EU to actively strengthen its international competitiveness and attractiveness to businesses and production facilities. She specifically called for a decisive focus on securing access and supply of essential raw materials.
