VDA President Hildegard Müller:
“The announced additional US tariffs of 25% on all passenger cars and light commercial vehicles not manufactured in the US send a disastrous signal for free, rules-based trade. The tariffs, which are scheduled to take effect on April 3, place a significant burden on both companies and the automotive industry’s closely interwoven global supply chains – with negative consequences especially for consumers, also including those in North America.
The additional tariffs also directly impact the US economy. The consequences will cost growth and prosperity on all sides. The US President’s previous tariff policy has therefore met with strong criticism, especially in US industry. However, it is also a fact that additional tariffs will have a significant negative impact on exports from the EU to the US.
Fundamentally, the transatlantic partnership and free and fair trade are of great economic importance to both sides and are a guarantee of growth, prosperity and jobs on both sides of the Atlantic.
The German automotive industry is calling for urgent negotiations between the US and the EU on a bilateral agreement. This would provide a forum for discussing the various tariff and non-tariff barriers to automotive products and could lead to a more balanced approach. Discussions on legal regulations, standards, and certifications would also be desirable – this would benefit both sides of the Atlantic and increase efficiency on both sides. The reduction of tariffs and trade barriers is a key driver for further investment and jobs in the United States. Export success and imports are complementary and the two sides of economic success. The US government and the EU should work together to achieve this.
During US President Trump’s first term in office, the EU and the US were able to reach an agreement on a solution to the trade conflict after intensive discussions. This demonstrates that solutions can be found through negotiations that take mutual interests into account. The EU must now act with unity and strength and continue to signal its willingness to negotiate.
The risk of a global trade conflict – with negative effects on the global economy and growth, prosperity, jobs and consumer prices – is high on all sides.”
Background material
- A share of 86% of mid-sized automotive companies expect that the US tariffs against numerous states and regions will also affect them. Approximately half (54%) expects to be indirectly affected, for example, through suppliers and customers. Around one in three companies (32%) sees itself as directly affected. This is one of the results of a recent survey conducted by the VDA among automotive suppliers and medium-sized manufacturers of trailers, bodies, and buses in February 2025.
- The German automotive industry has been present and successful in the USA for decades. The German automotive industry employs approximately 138,000 people in the USA. Of these, 48,000 work for car manufacturers and another 90,000 for German suppliers. The USA is an important component of the German automotive industry’s production network, and the global market is also served from there. In 2024, German manufacturers produced over 844,000 vehicles in the USA, of which around half were exported worldwide. Thus, the USA as a location for the automotive industry also benefits from international trade and the commitment of the German automotive industry.
- In 2024, passenger cars worth €6.7bn were exported from the USA to Germany (136,000 cars). This places US-made cars in third place in German import statistics, measured by value, behind the Czech Republic and Spain. In 2024, the USA exported over €10bn, or 233,600 units, to the European Union.
- Germany imported almost 450,000 vehicles to the USA in 2024.
- The USA is Germany’s most important trading partner in the overall automotive trade. The total trade volume of automotive goods between Germany and the USA in 2024 amounted to €44.7bn. German exports reached a total value of €36.8bn, while imports amounted to €7.9bn.
- The total export value of the German automotive industry was €279.8bn in 2024, of which the USA represents a 13.1% share.
- Companies headquartered in Germany from the three manufacturer groups (manufacturing of motor vehicles, trailers and bodies, and suppliers) have a total of 2,110 locations in the USA.
- In 2023, German manufacturers sold 1.38mn light vehicles in the USA. In 2024, the number was 1.40mn light vehicles.
SOURCE: VDA
