BERLIN: New tariffs announced by US President Donald Trump’s administration “will only create losers”, the German Automotive Industry Association (VDA) said Thursday, calling on the EU to respond with “force”.
“The EU is now called upon to act together and with necessary force, while continuing to signal its willingness to negotiate,“ the VDA said in a statement.
The body represents the German auto industry, for which the US is a key export market.
US consumers will experience “rising inflation and a reduced product range” while American companies will have less pressure “to innovate” as a result of the tariffs, it said.
The German auto lobby said the new measures would be a “considerable burden and challenge” for the global car industry and affect employment.
Trump announced that European Union goods would be subject to a 20 percent tariff as part of a long list of levies against countries around the world including major trade partners.
The auto industry is a pillar of the German economy and the country’s largest industrial sector.
Last year the US was the largest export market for German vehicles.
