VDA Statement regarding US tariffs on products from Mexico and Canada

"The tariffs on products from Mexico and Canada imposed today by US President Donald Trump, as well as the additional tariffs on Chinese goods, represent a severe setback for rules-based global trade – with significant impacts on all supply and production networks of the automotive industry, especially in North America, and also on consumers.

The imposition of additional tariffs is also incompatible with the USMCA (United States-Mexico-Canada Agreement), which President Trump himself negotiated and concluded during his first term in office.

The tariffs represent a significant burden for both companies and the closely interconnected supply chains of the automotive industry, with negative consequences, especially for consumers in North America. In addition, due to the successful international division of labor, some automotive industry products cross borders several times before they are installed in a vehicle. Here, the new tariffs will have a negative impact on production and work processes.

Overall, increasing geopolitical tensions and increasing protectionism mean that companies will have to serve markets more and more locally. This will have an impact on jobs in Germany and Europe. The exact effects will depend heavily on the respective competitive situation. But the fact is: sooner or later, isolation in all countries will only result in losers!
 
Germany and Europe must therefore – together with Mexico and Canada – work with even greater urgency to promote partnership and international cooperation that upholds and strengthens the terms of rule-based trade worldwide. At the same time, Germany and Europe must continue to support the transatlantic partnership with the USA, despite all the challenges.

Furthermore, the EU is on the right track when it advocates the conclusion of free trade agreements and against isolation. It must pursue this path more resolutely than before and conclude free trade agreements with as many regions in the world as possible. We expect pragmatism from the European Commission and the member states in the negotiations on free trade agreements and a leadership role from the new German federal government."