Automotive Leader Urges EU To Finalize Pivotal US Trade Deal Amid Tariff Threats

Automotive Leader Urges EU To Finalize Pivotal US Trade Deal Amid Tariff Threats

Amid new tariff threats from the United States, Hildegard Müller, the head of the German Association of the Automotive Industry (VDA), has publicly urged the European Union to implement the trade agreement that was reached in the summer of 2025. Speaking to “Redaktionsnetzwerk Deutschland” Müller stressed that both the EU and the USA must abide by the deal and that the EU now needs to finally execute its commitments from that previous summer. She called on both sides for de-escalation and the immediate resumption of talks.

The VDA chief pointed out that the competitiveness of the production base depends critically on Berlin and Brussels. She criticized the current lack of progress, arguing that the EU is devoting too much time to discussions about isolation and protectionism. However, she warned that such policies carry the inherent danger of increasing trade conflicts, which could significantly damage Germany’s export-focused economy and automotive sector. Müller instead advocated for open markets, stating, “We need more open markets, not fewer”. She used the experience with Mercosur in Latin America as an example of how slow the process for vital trade deals can be within Europe.

When asked whether stricter CO2 limits from Brussels could save the German car industry, Müller firmly disagreed. She stated, “We do not need to be saved”. Instead, she affirmed the industry’s commitment to investing and producing both in Germany and throughout Europe, thereby continuing to contribute to growth, prosperity, and employment. While acknowledging that electric mobility will largely define the future, Müller concluded that all types of engines will continue to be used globally.