The German and Czech automotive industries have called on the EU and US to find an alternative solution to tariffs, which are likely to have a significant impact on EU car manufacturing, Kallanish notes.
German automotive association VDA says US tariffs on foreign-made vehicles, which go into effect on 2 April, will have a “significant negative impact” on exports from the EU to the US. They “place a significant burden on both companies and the automotive industry’s closely interwoven global supply chains – with negative consequences especially for consumers, also including those in North America,” it adds.
Germany exported almost 450,000 vehicles to the USA in 2024. However, German manufacturers also have a significant presence in the US, producing over 844,000 vehicles there last year, of which around half were exported worldwide. The US exported 233,600 vehicles to the EU last year, of which 136,000 units went to Germany.
Czech automotive association AutoSAP meanwhile notes US tariffs pose a direct threat to EU carmakers and their suppliers, “disrupting global supply chains and threatening their competitiveness at a time when the automotive industry is facing a major transformation and increasing international competition.”
Although only 0.8% of Czech automotive exports went to the US in 2023, with no finished vehicles exported, the tariffs will impact Czech suppliers of parts and services, especially those supplying to German customers. This will mean a significant reduction in export opportunities, the association says.
The imposition of US tariffs on auto parts from 3 May at the latest will encompass “a significant part of the exports of many European and Czech companies and … could significantly deepen the economic impact of this decision,” the association continues.
Both VDA and AutoSAP are calling for urgent negotiations between the US and the EU on a bilateral agreement, with a focus on legal regulations, standards, and certifications.
The Polish Economic Institute meanwhile says US tariffs will negatively affect Poland, including through European and North American supply chains, and could shave 0.12-0.15% off Polish GDP.
The European Automobile Manufacturers’ Association (ACEA) said earlier in the week it is “deeply concerned” by the US tariffs, and called for dialogue with the US to find a rapid solution to avert tariffs (see Kallanish passim).
Adam Smith Poland
