German auto lobby welcomes EU approval of US trade deal but tariffs still weigh
Germany’s automotive industry has welcomed the European Parliament’s approval of the EU-US trade deal, but major concerns remain over high American tariffs that continue to put pressure on car manufacturers.
The VDA (German Association of the Automotive Industry) said the agreement is an important step toward providing certainty for businesses. However, the industry group stressed that the deal must now be formally adopted by the European Council as quickly as possible.
According to VDA President Hildegard Mueller, stable and reliable business conditions are critical for German automakers, especially as companies continue dealing with costly trade barriers in the United States.
Despite the trade agreement, US tariffs remain a major burden. Passenger cars and car parts currently face a 15% tariff, which Mueller described as a serious challenge for the German automotive sector and its global competitiveness.
The situation is even more severe for commercial vehicle manufacturers. Trucks are subject to a steep 25% tariff, while buses face an additional 10% duty. Mueller warned that these tariffs are of “existential importance” for manufacturers operating in this segment.
Industry leaders also argue that the tariffs hurt more than just European exporters. According to the VDA, the trade barriers weaken supply chains, discourage investment, and threaten jobs in the United States as well. Rising costs across the supply chain could ultimately be passed on to consumers, leading to higher prices for vehicles and transportation services.