Brussels, 27 March 2025
ACEA: US auto tariffs will hurt global automakers and US manufacturing at the same time
The European Automobile Manufacturers’ Association (ACEA) is deeply concerned by the US President’s announcement of additional tariffs on our sector. It comes at a watershed moment for our industry’s transformation and as fierce international competition mounts.
“European automakers have been investing in the US for decades, creating jobs, fostering economic growth in local communities, and generating massive tax revenue for the US government,” said ACEA Director General, Sigrid de Vries. “We urge President Trump to consider the negative impact of tariffs not only on global auto makers but on US domestic manufacturing as well.
Tariffs will not just impact imports into the US, a penalty that American consumers are likely to pay, but measures on automotive parts will also hurt auto makers producing cars in the US for export markets. European manufacturers export between 50% and 60% of the vehicles they make in the US, making a substantial positive contribution to the US trade balance.
The EU and the US must engage in dialogue to find an immediate resolution to avert tariffs and the damaging consequences of a trade war.
About ACEA
- The European Automobile Manufacturers’ Association (ACEA) represents the 16 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, and Volvo Group.
About the EU automobile industry
- 13.2 million Europeans work in the automotive sector
- 10.3% of all manufacturing jobs in the EU
- €383.7 billion in tax revenue for European governments
- €106.7 billion trade surplus for the European Union
- Over 7.5% of EU GDP generated by the auto industry
- €72.8 billion in R&D spending annually, 33% of EU total
Source – ACEA
BusinessEurope: Additional duties on cars and car parts will harm both Europe and the United States
Reacting to the US announcement of 25% additional duties, BusinessEurope Director General Markus J. Beyrer said:
“Additional duties on cars and car parts will harm both Europe and the US. They will add costs and could have a negative impact on existing investments on both sides of the Atlantic. Instead of increasing tariffs, the EU and the US should be committed to eliminating duties to generate more market opportunities and stimulate investments.
We are still convinced that solutions can be found through negotiations if there is political will on both sides. In the meantime, the EU needs to safeguard its economic interests and enhance its build more resilience through an ambitious market diversification agenda.”
Source – BusinessEurope (by email)
(Work in progress)