14:13 25-09-2025

German auto industry welcomes US tariff relief, but urges broader EU-US deal

The German Association of the Automotive Industry (VDA) has welcomed the United States’ decision to reduce import tariffs on European cars, applied retroactively to August 1. Even so, the industry stresses that exporters’ problems have not disappeared.

VDA President Hildegard Müller said the Trump administration’s formalization of a trade agreement with the European Union sends an important signal. At the same time, she noted that even lower duties still pose a tangible challenge for German manufacturers, including BMW, Mercedes-Benz, and Volkswagen.

She argued that the EU should continue intensive talks with Washington to secure better trading terms and remove the remaining barriers. That is especially crucial amid fierce competition and pressure from China, and as the sector pivots to electric vehicles, where global supply chains are decisive.

In short, while the German auto industry welcomes the progress, it expects Brussels to step up its diplomacy to safeguard the strategically important U.S. market. The subtext is clear: tariff relief helps, but predictable, lower-friction access is what will keep Europe’s brands competitive as electrification reshapes the landscape.