Tariff in EU-US deal 'burdens' German carmakers: industry group
"The US tariff rate of 15 per cent, which also applies to automotive products, will cost German automotive companies billions annually and burdens them," said Hildegard Mueller, president of Germany's main auto industry group, the VDA.
US President Donald Trump and European Commission President Ursula von der Leyen clinched a deal late Sunday that includes a baseline US tariff of 15 per cent in a bid to avert a full-blown trade war.
The new rate is lower than the 25 per cent tariff Trump slapped on carmakers in April, but significantly higher than the usual 2.5 per cent duty that was applied prior.
"Important now is how the agreement looks in concrete terms and how reliable it is," Mueller said.
The EU-US deal has so far received a muted reaction in Europe.
While German Chancellor Friedrich Merz hailed the deal, saying it avoided "needless escalation in transatlantic trade relations", EU chief von der Leyen acknowledged that "Fifteen per cent is not to be underestimated, but it is the best we could get."
France's minister for Europe, Benjamin Haddad, said on Monday the agreement was "unbalanced" and Germany's BDI business federation said the accord would have "considerable negative repercussions."
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