The VDA, Germany’s automotive industry representative body, has issued a warning about the potential negative impact of tariffs on international trade. The organization stated that such tariffs could have detrimental effects on the global economy and lead to price inflation in the US.
US President Donald Trump has proposed imposing reciprocal import tariffs on countries that impose duties on US exports. VDA President Hildegard Müller cautioned that implementing new tariffs could result in retaliatory measures, creating a cycle that ultimately raises prices for consumers. She criticized Trump for potentially exacerbating inflation in the US rather than curbing it.
Müller highlighted the disparity in tariffs between the EU and the US, pointing out that while the EU imposes a 10% duty on imported cars, the US charges 25% on pick-up trucks. She emphasized that increasing tariffs on EU cars would not only harm exports but also drive up costs for consumers on both sides of the Atlantic.
The VDA called for dialogue between the EU and the US to address trade barriers and promote regulatory cooperation. Müller stressed the importance of finding mutually beneficial solutions rather than escalating tensions through tariff increases.
The organization also underscored the economic significance of German investment in the US, noting that German automotive companies employ around 138,000 people in the country. The VDA highlighted the success of US-made cars in the German market and urged President Trump not to hinder trade relations.
In conclusion, the VDA emphasized the need for cooperation and mutual understanding to prevent further escalation of trade disputes. The organization urged both parties to engage in constructive dialogue and work towards a resolution that benefits both the automotive industry and consumers.
