EU Car Industry Urges End to US Trade Tariffs Dispute

Post by: Bandan Preet

Photo: WAM

The trade fight between the United States and Europe is getting more serious, and European car companies are very worried. They say that new taxes from the US on cars made in Europe could hurt jobs, investments, and the economy in both places.

The European Automobile Manufacturers’ Association (ACEA), which speaks for Europe’s carmakers, is asking leaders from both sides to solve the problem quickly. The US has announced a 25% tariff (extra tax) on light vehicles coming from Europe.

Sigrid de Vries, the head of ACEA, said, “We are really worried about how these trade problems are growing. European car companies are committed to working in the US. We help the US economy by creating about half a million jobs in the auto industry. In 2024 alone, we sent more than 750,000 cars to the US. We are also putting money into local US communities to help them grow.”

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She added, “We ask our leaders to meet soon and fix the issues that are blocking fair trade between long-time partners. It’s time to make the EU-US relationship strong again.”

While ACEA used a calm tone, the European automotive supplier group, CLEPA, had stronger words. CLEPA represents companies that make car parts. They said the US tariffs are hurting businesses on both sides of the Atlantic Ocean.

CLEPA said, “The US actions are bad for car parts makers and for trade between the EU and US.” The group urged the EU leaders to stay united and protect Europe’s economy.

On top of the steel and aluminium tariffs starting today, CLEPA warned that more taxes on car parts could come as soon as May 3, 2025. That means European companies could get hit again if the EU fights back with its own taxes on American goods.

Benjamin Krieger, CLEPA’s Secretary General, said, “European companies provide one-third of all foreign car investment in the US. That shows how strong the trade connection is. But these new taxes from the Trump administration are hurting everyone—both in Europe and in US factories that use European car parts.”

He added, “The EU must stay strong and united. We need to make sure we can make a fair deal with the US. The EU should also focus on making new trade deals with other places like Mexico and Mercosur. We must also improve things in Europe—cut rules that slow down work, make energy cheaper, and support local companies so they can grow. If we make the right moves now, we can protect Europe’s economy and its car industry for the future.”

EU trade ministers are meeting on Monday, April 6. They might vote on Tuesday about how to respond. If approved, their first response will start on April 16. This is to answer the US’s decision to put extra taxes on European steel and aluminium.

Bottom line:
European carmakers and suppliers are worried that rising trade problems with the US will damage jobs and business. They are asking leaders to solve the issue quickly and fairly, so both sides can continue to benefit from strong trade.

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