A deal on US tariffs likely, says German auto industry head
The head of the German Association of the Automotive Industry, Hildegard Müller, is confident that a deal will be reached between German car manufacturers and the US over the tariffs imposed by the US. While the timing and details of the agreement are still uncertain, Müller is optimistic that a resolution will be found.
According to Müller, the tariffs have already had a significant impact on the German industry, with estimated additional costs of around half a billion euros in April alone. The tariffs on car parts, which were introduced in May, have added to the burden. The US tariffs of 25 percent on imported vehicles, effective since April 3, were justified by US President Donald Trump as a response to trade imbalances.
Müller highlighted the importance of the German auto industry to the US economy, pointing out that around 140,000 people are employed in the US by German car manufacturers and their suppliers, with over 840,000 vehicles produced in the US in 2024, of which half are exported.
The current situation, Müller said, serves as a warning to Brussels and Berlin to strengthen the European and German location. Understanding Trump’s goal of reindustrializing the US through tariffs, Müller believes that this should prompt the EU to take action to make the European location competitive and attractive for companies and their productions.