Manager Magazin: Ms. Müller, we put ourselves in the way of thinking from US President Trump. Europe raises 10 percent inches on imported cars from the United States, conversely 2.5. Don’t you have to find that unfair?
Hildegard Müller: It’s not that easy. The fact is: While customs for importing cars in the EU is 10 percent and 2.5 percent in the United States, the USA, for example, raises 25 percent of the popular pick-up trucks. The location is therefore quite more complex than it initially seems.
From April 3, the United States will now raise 25 percent special customs on imported cars. As a VDA President, you require approaching negotiations. Trump likes to see himself as a dealmaker. What could the EU offer Trump’s supporters?
It is now important to have a confident, robust and strong appearance – and the simultaneous willingness to negotiate. We need a bilateral agreement between the USA and the EU. The reduction of tariffs and trade barriers is an essential driver for further investments and jobs also in the USA. Export success and imports ultimately complement each other – the two sides of the economic success. The US government and the EU should work together for this.
Some voices in the EU speak of a provocation, require a tough reaction, a hard appearance compared to the United States. What do you recommend, sugar bread or whip?
The EU’s answer should be clear, confident and closed European. Only offering dialogue is not enough. And there is a chance to find solutions: In the first term of office of US President Trump, the EU and the United States agreed on a solution to the trade conflict at the time. This shows that solutions can be found in negotiations that take into account the mutual interests.
The UAW-Auto-Auto Worker applauds Trump, welcomes the special tariffs. Ford, GM and Stellantis warn of higher prices because the tariffs should also apply to imported auto parts. Damage tariffs more of the US car industry than they use it?
The additional tariffs meet the US economy directly-and products for the US users and consumers are more expensive. The US manufacturers also do not want these tariffs-it is not for nothing that the US industry is generally alarmed and criticizes the current course of the US president.
So do the tariffs – unlike Trump, do not make any sense?
If cars are now massively more expensive for US consumers, then it will also have subsequent effects such as increasing inflation. This policy for the US economy is certainly not economically sensible. The applause of the US unions is not thought out. As with all tariffs and protectionist measures, there are ultimately only losers on all sides.
How strongly do the special tariffs hit German manufacturers? Which losses do you expect in the worst case?
The tariffs should apply to all imported cars and also at central car parts. They should come into force on April 3. In the arrangement published later, it was said that the penalty taxes for auto parts could start a little later – but in any case until May 3. There are currently still too many questions open to make more concrete statements here. However, it is clear: Overall, prosperity and growth on both sides of the Atlantic will suffer. Unfortunately, it turns out that America First apparently means more and more America Alone – this will not only affect Germany and other regions, but also the United States.
With a view to the auto industry, they spoke on Deutschlandfunk today of a balanced trade balance between the USA and Germany. The figures show something else: Germany recently exported about three times as many vehicles to the USA with 450,000 cars.
You also have to look at the German activities in the USA: In 2024, German manufacturers in the United States produced over 844,000 vehicles, of which around half of all over the world was exported. The German automotive industry employs around 138,000 people in the United States. The fact is: the USA is an important part of the production network of the German automotive industry, and the world market is also served from there. The United States therefore benefits from international trade and the commitment of the German automotive industry. You shouldn’t overlook that.
Trump hopes for the special tariffs that foreign manufacturers are increasingly moving production to the USA. Hyundai has just announced billion -dollar investments in the United States. Do you think German manufacturers will now invest more in the United States?
As mentioned before, our companies are already active in the United States to a large extent. In the debate, it remains important to keep looking at the concrete numbers and facts – they quickly make it clear how much the United States harms itself here.
In view of the problems in China, German carmakers recently increasingly focused on the United States. In an escalating customs dispute, the shops are under pressure here. Do Audi, BMW and Co have to reorient themselves now? Are there any attractive markets for your clientele, Ms. Müller?
We are a worldwide active industry. We have large sales markets with Great Britain, China or the EU countries. But the fact is: the USA is currently the most important abroad for us. That is why Berlin and Brussels have to act and find a solution as soon as possible. At the same time, it shows how important on the one hand the strengthening of the competitiveness of the Europe location is, and on the other hand, how high the priority for the EU must be to open up new markets. For years we have been calling for a much more determined and faster action with regard to the conclusion of new free trade, raw material and energy agreements- with a maximum of many regions. Now it becomes clear again why you shouldn’t lose time here.
A practical question. If the tariffs grab from April 3, how should that work? Has the VDA already gave its members a how-to? Are the companies prepared?
Our companies are of course prepared and have developed a set of options. The situation that has now occurred was foreseeable. Nevertheless, it becomes extremely challenging.