Customs dispute: Auto industry calls for increasing negotiations on tariffs

The Association of the Automotive Industry (VDA) warns of immense economic consequences of the announced US car tariffs. The tariffs that are supposed to come into force at the beginning of April represented a significant burden for both companies and the closely interwoven global supply chains of the automotive industry, said VDA President Hildegard Müller. They would have negative consequences for consumers, also in North America.

“The consequences will cost growth and prosperity on all sides,” said Müller. Additional tariffs have significant negative effects on exports from the EU to the USA, but also have the US economy. Müller called for a bilateral agreement between the United States and the EU. “Discussions about legal regulations, norms and certifications would also be desirable – this would bring advantages for both sides of the Atlantic and increase efficiency on both sides,” said the association president.

According to the VDA, 86 percent of the automotive medium -sized companies expect the US tariffs against numerous states and regions. At the same time, the United States is an important part of the German car industry production network: According to VDA, German manufacturers produced over 844,000 vehicles there, according to VDA, of which around half were exported all over the world.

USA most important market for German car manufacturers

The tariffs of 25 percent announced by Donald Trump are likely to put a lot of strain on the German auto industry. The United States is its most important sales market, show the latest figures from the Federal Statistical Office.

No other country took as many new cars from Germany as the United States: they were at the front with a share of 13.1 percent, followed by Great Britain and France. Almost every third Porsche and every sixth BMW were sold in North America in 2024, and the proportion was 12 to 15 percent at VW, Audi and Mercedes-Benz.