A recent study found that 186,000 jobs could be lost in the European automotive industry over the next decade.
ADVERTISEMENTIf Donald Trump does what he promised during the electoral campaign, EU economic growth could be seriously undermined.
The president-elect repeatedly stated his intention to impose a 10% tariff on European products.
And one of the worst hit sectors would be the automotive industry, in particular the German one.
The Association of the German Automotive Industry (VDA) says everything must be done to ensure that new US tariffs are not imposed. The association’s spokesperson, Simon Schuetz, told Euronews:
« I think that both sides need to talk to prevent this. If it happens, we both know what will happen next. And the European Union will probably have some measures already ready and that would be the start of another trade conflict or something in that direction. And that’s not what we need. Europe and the US need to understand that, looking at all the geopolitical challenges, we need to work together and that politics and economics needs to be considered together. »
The situation for the automotive industry in Germany is already difficult, with Volkswagen recently announcing the closure of three plants. A recent study found that 186,000 jobs could be lost over the next decade as the industry switches to EV production.
The unsolved issue of steel and aluminium
The other most affected sector would be the steel industry. The US and Europe still haven’t fully resolved the issue of tariffs imposed by the previous Trump administration – which have already caused a noticeable slump in exports.
According to the European Steel Association (EUROFER), further lengthy and complex negotiations lie ahead.
Axel Egger, its Director General, told Euronews:
« A kind of way forward had been found between Joe Biden and the European Commission under Ursula von der Leyen to address the trade conflicts concerning steel with the global arrangements on sustainable steel and aluminum. The negotiations have been stalled since the election campaigns in the US started. And we have of course hoped and we still hope that the negotiations can continue after the elections to find a solution, because otherwise we will fall back into the tough 25% tariffs on European steel ».
The Association also underlines the need for the new US president to be persuaded of the climate goals – not least for the sake of his own industry, as steel and aluminium manufacturing is one of the biggest carbon-emitters.
