The German automotive industry reports no discernible relief from the recently agreed-upon trade deal between the European Union and the United States. Hildegard Müller, President of the German Association of the Automotive Industry (VDA), stated to the “Handelsblatt” on Tuesday that the agreement has yet to deliver clarity or improvement for German automakers. She indicated that associated costs already run into the billions and continue to escalate.
Ms. Müller urged the United States to roll back sectoral tariffs impacting the European – and specifically the German – automotive sector, calling for strong advocacy from both the European Commission and the German federal government to achieve this.
Despite the lack of a formal signature from Washington, the European Commission remains confident that the U.S. will soon follow through on its commitment to reduce automotive tariffs from 27.5% to 15%. A Commission spokesperson indicated on Tuesday that finalizing the remaining details is the immediate focus, with a joint statement anticipated to precede the tariff reduction. However, the Commission refrained from establishing a specific deadline for the U.S. to implement its pledged commitments, stating a desire not to preemptively pressure the U.S. administration.
