The German automotive industry welcomed the trade agreement between the U.S. and the European Union (EU) that reduces tariffs on vehicles exported to the United States from 27.5% to 15%, starting August 1.
Mercedes-Benz stated that the agreement provides relief for the German automotive industry. The company called for continued dialogue between the EU and the U.S. to further reduce trade barriers, emphasizing the importance of cooperation for the growth of the sector.
On its part, VW was more cautious and is awaiting more details about the agreement soon. “We welcome the trade agreement between the EU and the U.S. regarding tariffs and the planning security it brings to the European automotive industry”, said VW.
“We hope that the details of the agreement will be finalized and communicated soon. Once we have the exact content of the agreement, we will examine and evaluate it carefully”, VW added in a statement.
For her part, the president of the German automotive association VDA, Hildegard Mueller, said that the agreement prevents a new escalation in the trade dispute between the two major markets, but it will still be costly for the German automotive industry. “It is clear that the American tariff of 15% for the automotive sector will impose high costs annually on companies in the automotive sector”.
However, Hildegard Mueller, in a statement, also warned “that it will be necessary to understand how the agreement will be structured in concrete terms and how reliable it will be”.
