Published by Global Banking & Finance Review®
Posted on February 19, 2025
2 min readLast updated: January 26, 2026
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Germany's auto industry criticizes Trump's proposed 25% car tariffs, urging the EU to negotiate to avoid a trade conflict.
BERLIN (Reuters) - Threats by U.S. President Donald Trump to impose tariffs of around 25% on car imports are a "provocation," Germany's car lobby group said on Wednesday, calling on Brussels to strike a deal with what is its biggest export market.
"Tariffs as a negotiating instrument are the wrong tool. The risk of a global trade conflict with negative consequences for the global economy is high," Hildegard Mueller, president of the VDA, said.
Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry (DIHK), said potential tariffs on car imports as outlined by Trump would significantly hurt Germany's automotive industry in what is an "already bumpy road".
According to VDA and DIHK statistics, around 13% of German car exports go to the United States, more than to any other country, while Germany's automotive industry, both carmakers and suppliers, employ 138,000 staff in the U.S.
Trump on Tuesday said he intended to impose auto tariffs "in the neighborhood of 25%" and similar duties on semiconductors and pharmaceutical imports, having previously said that levies on cars would come as soon as April 2.
"A spiral of tariffs between the USA and the EU would have serious consequences. Protectionism is not a solution, but puts a brake on economic growth on both sides of the Atlantic," Treier said.
Auto executives have suggested that Brussels should bring down the tariffs on U.S. car imports to 2.5% from 10%, which is the current level of U.S. tariffs, even though there is a separate 25% tariff on pickup truck imports.
(Reporting by Christian Kraemer and Victoria Waldersee; Writing by Christoph Steitz; Editing by Bernadette Baum)
Germany's car lobby group described Trump's proposed tariffs as a 'provocation' and urged Brussels to seek a deal.
The proposed tariffs could lead to a global trade conflict with negative repercussions for the global economy, according to industry leaders.
Approximately 13% of German car exports are sent to the United States, making it the largest market for German automotive products.
Volker Treier stated that potential tariffs would significantly harm Germany's automotive industry and could lead to serious economic consequences.
Auto executives have suggested reducing U.S. tariffs on car imports from 10% to 2.5%, while a separate 25% tariff on other imports remains in place.
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