German car industry urges caution on US tariffs
Germany’s national automotive industry organisation VDA has warned that an increase in tariffs on exports of cars from the European Union to the US would directly affect the US economy.
In a statement in February, VDA said discussions about tariffs at the start of 2025 had led it to conclude that there is now a high risk of a global trade conflict, with negative effects on the global economy.
Customs duties for importing cars into the EU at the moment are 10%, compared 2.5% in the US. But VDA pointed out that the US charges 25% on imports of some vehicles, notably pick-up trucks, which are popular in that market.
It described suggestions from US president, Donald Trump, that a tariff of 25% on all vehicle imports from the EU as “a provocation”.
VDA urged the EU to enter into a constructive dialogue with the US on this subject, taking “mutual interests” into account.
It then pointed out that German manufacturers play an important role in the wider US car industry, producing 900,000 vehicles there in 2023, of which 50% were shipped to customers in other countries, boosting US exports.
Also in 2023, Germany imported 193,000 vehicles from the US, with a total value of €8 billion.
In addition, the German automotive sector is the source 138,000 jobs in the US, according to VDA, 48,000 in automotive manufacturing companies and 90,000 in supplier companies.
