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European auto industries urge alternatives to US tariffs

1 Apr 2025 13:59 reported by Rita Su

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German and Czech automotive industries are urging the EU and US to seek alternatives to tariffs, warning of severe consequences for European car manufacturers and supply chains. 

The German Association of the Automotive Industry (VDA) stated that the US auto tariffs, set to take effect on April 2, will disrupt global supply chains and harm both EU exports and North American consumers. In 2024, Germany exported 450,000 vehicles to the US, while US-based German manufacturers produced 844,000 vehicles, half of which were exported globally. 

The Czech Automotive Industry Association (AutoSAP) warned that tariffs will threaten EU carmakers and suppliers, even though Czech direct exports to the US remain low. The impact on parts suppliers, especially those serving German manufacturers, could significantly reduce their export opportunities. 

Additionally, the US is set to impose tariffs on auto parts by May 3, potentially deepening economic consequences across Europe. 

The Polish Economic Institute estimates a 0.12-0.15% GDP decline for Poland due to supply chain disruptions. The European Automobile Manufacturers' Association (ACEA) has also expressed concern, urging immediate negotiations between the EU and the US to find a tariff-free solution.

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