The European Parliament’s recent approval of Brussels' trade deal with the United States offers clearer direction for German vehicle manufacturers, yet substantial trade barriers remain in place, Germany’s main industry group said on Tuesday.
Germany’s VDA automotive association welcomed the parliamentary decision but stressed that the agreement now needs to be formally adopted by the European Council without delay. In a statement, VDA President Hildegard Mueller underscored the importance of legal certainty for companies operating across international markets, saying: "Reliable operating conditions are of paramount importance to our companies," a point the association said underpins its call for swift adoption.
The VDA highlighted specific tariff levels in the United States that continue to complicate trade for German automakers. U.S. duties of 15% on passenger cars and their parts remain a significant obstacle for the sector, the association said. The situation is even more acute for commercial vehicle producers: trucks face a 25% tariff and buses are subject to an additional 10% duty.
Mueller warned that the higher levies on commercial vehicles are of particular concern, calling their impact "of existential importance" for manufacturers operating in that segment. The association argued these duties have broader consequences beyond immediate pricing effects.
In its statement, the VDA said:
highlighting the association’s view that tariffs ripple across production networks and final prices."They also undermine investment and jobs in the U.S., weaken supply chains, drive up costs throughout the entire value chain, and will ultimately burden consumers as well,"
While the parliamentary approval moves the trade deal forward, the VDA’s remarks underscore that tariff schedules remain a structural constraint for cross-Atlantic auto trade until the European Council completes the formal adoption process. The association’s position places emphasis on both immediate policy action and longer-term implications for investment, employment and consumer costs linked to continuing duties.
Summary
- The VDA welcomed the European Parliament’s approval of the EU-US trade deal and urged fast adoption by the European Council.
- U.S. tariffs of 15% on passenger cars and parts and the higher levies on commercial vehicles remain key hurdles.
- The association warned that tariffs could weaken supply chains, curb investment and raise costs for consumers.