One of the sectors most affected by the tariffs promised by Donald Trump will be the automobile industry, especially the German automobile industry.
EU economic growth if Donald Trump delivers what he promised during the election campaign can be seriously affected. The next US president has repeatedly announced his intention to impose 10% tariffs on European products.
One of the most affected sectors would be the auto industryand especially the German automobile industry. The Association of the German Automobile Industry says everything must be done to ensure new US tariffs are not imposed.
“I think both sides need to talk to prevent this. If something like this happens, we both know what will happen next. And the European Union will probably already have some measures prepared and this will happen. new beginning of a trade conflict or something to that effect,” says Simon Schuetz, a spokesman for the association.
“And that’s not what we need… Europe and the United States must now understand that, given all the geopolitical challenges, we need to work together, and politics and economics need to work together. should be considered together” he adds.
The situation in the sector is already complicated
The situation in the automotive industry in Germany is already difficult; Volkswagen recently announced it will close three of its factories, and a study says those facilities may disappear 186,000 jobs As the industry transitions to electric vehicle production over the next decade.
Another sector at risk is the steel sector. The US and Europe remain at odds over already troublesome tariffs imposed by the previous Trump Administration. a significant loss in exports. They will face longer and more complex negotiations, according to the European Steel Union.
“Between Joe Biden and the European Commission and Von der Leyen, a way forward was found to solve this problem.” steel-related trade disputes There are global agreements on sustainable steel and aluminium,” says Axel Egger, director general of the European Steel Association.
“Negotiations have been stalled since the US election campaigns began, and of course we are hopeful and continue to hope.” Negotiations can continue from now on “We need elections to find a solution, because otherwise we will go back to harsh 25% tariffs on European steel,” he adds.
The association also says the president-elect needs to be convinced about climate targets for the good of his industry, knowing that steel and aluminum manufacturing are important. One of the sectors with the highest carbon emissions.
