The EU and the UK Urge the U.S. to Avoid Automotive Tariffs

Automotive industry trade associations from the EU and the UK urged political leaders to address the tariffs the U.S. plans to impose. The measure could significantly disrupt international trade, affecting not only European manufacturers but also the competitiveness of the U.S. industry.

Risk for Manufacturers and Consumers

President Trump proposed a 25% tariff on imported cars, which would impact global manufacturers and increase costs for American consumers. The European Automobile Manufacturers Association (ACEA) warned that this policy would make vehicles more expensive, reduce supply, and hinder investment in the industry.

Consequences for U.S. Production

ACEA cautioned that tariffs would not only harm European automakers but also those manufacturing in the U.S. for export. Companies with plants on U.S. soil rely on international markets, and any restrictions could jeopardize jobs and operations.

European Investment in the U.S.

European manufacturers have created thousands of jobs in the U.S. and significantly contributed to the economy. ACEA highlighted that up to 60% of cars produced in the U.S. by European brands are exported, strengthening the country’s trade balance.

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Call for Urgent Negotiations

ACEA urged the EU and the U.S. to initiate dialogue to prevent a harmful trade escalation. It warned that protectionism could hinder the development of new technologies and complicate the transition to electric and autonomous vehicles.

UK’s Response

The Society of Motor Manufacturers and Traders (SMMT) expressed concern and advocated for economic cooperation instead of trade restrictions. Mike Hawes, SMMT’s chief executive, emphasized the historic relationship between both industries and the need to maintain a stable trade flow.

Key Trade Relationship

The U.S. is the second-largest export market for the British automotive industry, with over 101,000 cars shipped in 2024, valued at £7.6 billion. Additionally, automotive trade between both nations has generated thousands of jobs and strengthened the sector’s competitiveness.