VDA Spokesperson: "Severe setback for the rules-based trade order"

"The additional tariffs announced by US President Donald Trump on products from Mexico, Canada and China represent a severe setback for rules-based global trade.  

The fact that the tariffs on imports from Mexico and Canada will initially be suspended for a month following an exchange of views between the governments is an indication that negotiated solutions are possible. These negotiations should be conducted by all sides with the aim of finding an consensual solution to prevent tariffs. Additional tariffs would have a significant impact on all supply and production networks in the automotive industry, particularly in North America, as well as higher costs for consumers. The imposition of additional tariffs is also incompatible with the USMCA agreement (United States-Mexico-Canada Agreement), which President Trump himself negotiated and concluded during his first term of office.  

Nevertheless, uncertainty remains for the economy. The risk of a global trade conflict with negative consequences for the global economy remains high. China has already announced countermeasures. A spiral of reaction and counter-reaction will ultimately harm everyone involved.

Depending on the room for maneuver of the individual companies, these tariff increases can make vehicles more expensive, especially for US consumers, and place an additional burden on the supply chain or even the companies themselves. 

Overall, increasing geopolitical tensions and rampant protectionism and activism are continuing to lead to companies having to serve the markets more and more locally. As a result, this will not remain without repercussions for jobs in the countries involved. Although the exact effects depend heavily on the respective competitive situation, the fact is that sooner or later, isolationism will only have losers in all countries!  

Germany and Europe, too, must therefore make an even more urgent and determined commitment to a transatlantic partnership and stable international cooperation that adheres to the rules of rules-based trade worldwide. The EU should proactively advocate the further conclusion of free trade agreements."