The German automotive industry has raised concerns about the impact of U.S. President Donald Trump's tariff proposals on car prices and global automakers. Hildegard Mueller, president of Germany's VDA auto association, stated that Trump's tariffs could lead to higher U.S. inflation. She emphasized the importance of further discussions on the matter.
Although Trump has not yet implemented the full extent of the tariffs he had promised, he stated that imposing tariffs on Canada and Mexico at a rate of 25% could be a possibility as early as February 1. The threat of tariffs has influenced automakers to consider adjustments to their production strategies.
Major automobile manufacturers like Volkswagen and Stellantis expressed concerns about the potential economic repercussions of U.S. tariffs, emphasizing their significant investments in the U.S. market. Companies have been engaging in negotiations with the U.S. administration to avoid tariff implementations.
Stellantis Chairman John Elkann's discussions in Washington and Volkswagen's ongoing interactions with the Trump administration reflect the industry's efforts to address tariff challenges. German carmakers with production facilities in states supporting Trump have underscored their commitment to American manufacturing, highlighting their contributions to job creation and economic growth in the U.S. The VDA's Mueller stressed the importance of recognizing these factors in tariff discussions, emphasizing the need to develop specific responses to potential tariffs.