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German Industry Slams Trump's Tariff Hike on EU Autos, Warns of Trade Deal Collapse
🇩🇪 Germany /Economy & Trade

German Industry Slams Trump's Tariff Hike on EU Autos, Warns of Trade Deal Collapse

From Die Zeit · (17m ago) German Critical tone

Translated from German, summarized and contextualized by DistantNews.

TLDR

  • German industry leaders criticize Donald Trump's announced tariff hike on EU cars and trucks.
  • The VDA warns the 25% tariff would severely burden the auto industry and damage transatlantic relations.
  • Industry groups urge de-escalation and dialogue, questioning the legal basis for Trump's move.

Donald Trump's latest tariff announcement has sent shockwaves through Germany's powerful automotive sector, with industry leaders strongly condemning the move. The Association of the German Automotive Industry (VDA) has issued a stark warning: a 25% tariff on cars and trucks imported from the EU would represent a "severe burden" on transatlantic relations at an already challenging time for the industry. VDA President Hildegard Müller emphasized that such a move would be "enormously costly" for German and European carmakers.

Die Ankündigungen des US-Präsidenten, die Zölle ​auf Lkws und ⁠Autos, die aus der ​EU in die USA eingeführt werden, ‌auf ⁠25 Prozent ​zu erhöhen, sind eine erneute und schwerwiegende Belastung der transatlantischen Beziehungen

— Hildegard MüllerPresident of the Association of the German Automotive Industry (VDA), commenting on Trump's tariff announcement.

This escalation is particularly galling given the existing trade agreement between the US and EU, struck in September 2025. Müller stressed the importance of adhering to this deal, urging the EU to fulfill its part of the bargain while calling for de-escalation and swift talks. The German automotive industry, a cornerstone of the national economy, relies heavily on open international markets, and Trump's protectionist policies are seen as a direct threat to its competitiveness and stability.

Die Kosten durch zusätzliche Zölle wären für die deutsche sowie europäische Automobilindustrie in ohnehin sehr herausfordernden ⁠Zeiten enorm

— Hildegard MüllerVDA President highlighting the financial impact of the proposed tariffs.

The German government and industry are also questioning the legal foundation for Trump's proposed tariffs. The Federation of Wholesale, Foreign Trade and Services (BGA) echoed the VDA's concerns, with President Dirk Jandura telling Reuters that "unilateral tariff threats undermine trust and significantly burden transatlantic trade." The lack of a clear legal basis adds to the frustration and uncertainty, highlighting what many in Germany perceive as the unreliability of the US administration under Trump. This situation underscores a fundamental divergence in trade philosophy, where Germany and the EU advocate for multilateral cooperation and stable agreements, while the US appears increasingly inclined towards unilateral action.

Das bedeutet daher auch, dass die EU ihren ‌Teil der bereits im letzten ​Sommer getroffenen Abmachungen nun endlich ⁠umsetzen muss

— Hildegard MüllerVDA President emphasizing the need for the EU to fulfill its part of the trade agreement.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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