Rising EU-US trade tensions raise concerns for European automakers over jobs, investment, and economic growth.
Europe’s automaker trade association, ACEA, has called for the swift resolution of the ‘EU-US trade dispute’ in rection to new US tariffs of 25% on light vehicles imported from the Europe.
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“We are deeply concerned about the escalation of trade tensions in the world. European automakers are committed to being active in the US, making an important contribution to the US economy, accounting for around half a million jobs across the auto sector, exporting over 750,000 vehicles to the US in 2024, and actively investing in local communities to foster economic prosperity,” said Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA).
He added: “We urge our leaders to meet urgently so that they can find a solution to any issues preventing free and fair trade between historic allies and allow the EU-US relationship to flourish once again.”
There was a harder and more combative sounding tone from Europe’s automotive supplier trade association, CLEPA.
CLEPA said it ‘stresses that the measures from the Trump administration negatively affect automotive suppliers and trade relations on both sides of the Atlantic’. The association called on European institutions to ‘respond with unity and determination to safeguard the EU’s economy’.
In addition to the tariffs on aluminium and steel taking effect today, CLEPA pointed out that tariffs on automotive parts are expected on 3 May 2025. Therefore, EU automotive suppliers could face ‘further impact from potential retaliation measures on certain US-sourced products’.
Benjamin Krieger, CLEPA Secretary General, said: “With EU suppliers driving a third of foreign direct investment in the US, transatlantic trade ties run deep. But Trump’s tariffs are delivering a heavy blow—not just in Europe but also across North American operations, where EU-made components power vehicles exported to the US. For an industry already on edge, this escalation adds further strain.
“The EU must respond with unity and strength. The aim: to create the right conditions for a fair deal with the US. It must also show real commitment to diversification by advancing trade agreements, starting with Mercosur and Mexico. Finally, we must get competitive again—cut red tape, lower energy cost, reduce the regulatory burden and strategically stimulate local demand to safeguard essential know-how and technological leadership. A well-calibrated response now will shape Europe’s economic position for years to come.”
EU trade ministers will meet on Monday, 6 April, with a possible vote on a first set of retaliation measures as early as Tuesday. These measures would take effect on 16 April in response to the US Section 232 tariffs on steel and aluminium.
