German car lobby reacts to Trump's tariff threats
- February 19, 2025
- Category: Stocks

The German car industry has responded to threats made by U.S. President Donald Trump to impose tariffs of approximately 25% on car imports. The German car lobby group referred to these threats as a "provocation" on Wednesday and urged Brussels to negotiate a deal with its largest export market.
The president of the VDA, Hildegard Mueller, expressed her concerns about using tariffs as a negotiation tool. She warned that this approach could escalate into a global trade conflict with negative implications for the worldwide economy.
Volker Treier, the foreign trade head at the German Chamber of Commerce and Industry (DIHK), also voiced his apprehensions. He suggested that the tariffs proposed by Trump could severely impact Germany's automotive industry, which is already facing challenges.
Statistics from the VDA and DIHK reveal that the U.S. is the largest recipient of German car exports, accounting for around 13% of the total. Additionally, the German automotive industry, encompassing car manufacturers and suppliers, employs about 138,000 people in the U.S.
Treier warned of the serious consequences of a tariff war between the U.S. and the European Union (EU). He stated that protectionism would not resolve the issue but would instead hinder economic growth on both sides of the Atlantic.