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| AutoSAP |
The German and Czech automotive industries are urging the EU and US to negotiate an alternative to the upcoming US tariffs on foreign-made vehicles, which could significantly disrupt EU car manufacturing, Kallanish reports.
US Tariffs Threaten European Car Exports
The German automotive association VDA warns that the new tariffs, effective April 2, will have a “significant negative impact” on EU exports to the US. The association highlights that these measures could burden global supply chains and negatively affect consumers, including those in North America.
Germany exported nearly 450,000 vehicles to the US in 2024, while German automakers also produced over 844,000 vehicles in the US, exporting half of them worldwide. In contrast, the US exported 233,600 vehicles to the EU last year, including 136,000 to Germany.
Czech and Polish Concerns Over Supply Chain Disruptions
The Czech automotive association AutoSAP emphasizes that US tariffs will harm EU carmakers and suppliers, particularly at a time of increasing global competition. While only 0.8% of Czech automotive exports went to the US in 2023, Czech parts suppliers, particularly those serving German automakers, will face reduced export opportunities.
AutoSAP also warns that US tariffs on auto parts, set to take effect by May 3, will significantly impact European and Czech companies, deepening the economic strain on the industry.
Meanwhile, the Polish Economic Institute predicts the tariffs will negatively affect Poland through disruptions in European and North American supply chains, potentially reducing Polish GDP by 0.12-0.15%.
Calls for Urgent Negotiations
Both VDA and AutoSAP are urging the US and EU to negotiate a bilateral agreement addressing legal regulations, standards, and certifications to prevent economic damage. The European Automobile Manufacturers’ Association (ACEA) has also expressed deep concern, calling for immediate dialogue to find a solution and avoid tariffs.
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