The German automotive industry is issuing a stark warning against further escalation in the trade dispute between the United States and the European Union.
Hildegard Müller, President of the German Association of the Automotive Industry (VDA), has urged both parties to swiftly reach a resolution. In an interview with “Bild” Müller emphasized that German automakers are already feeling the impact of US tariffs implemented in April. “The burdens are now running into the billions” she stated.
Müller expressed concern regarding the EU’s potential retaliation with its own tariffs, specifically targeting the automotive sector. She argued for a strategically sound approach, stressing that countermeasures should not negatively affect European industry. “Approximately two-thirds of US auto exports to the EU are from German manufacturers. Further burdening this relationship must be avoided” she said. According to Müller, each additional percentage point of tariff imposed in response would increase costs for manufacturers by roughly €100 million annually.
Müller suggested the EU should draw broader conclusions from this conflict. She pointed out that the US administration’s tariff policies are designed to revitalize domestic industries. This situation, she suggested, should motivate the EU to take decisive action to enhance Europe’s international competitiveness and attractiveness for businesses and production facilities. Müller specifically mentioned the need to proactively address access to and supply of raw materials.