ACEA Warns New US Tariffs Threaten Both Global Auto Trade and Domestic US Manufacturing

ACEA Warns New US Tariffs Threaten Both Global Auto Trade and Domestic US Manufacturing

(IN BRIEF) ACEA has voiced serious concerns over the US President’s recent decision to impose additional tariffs on the automotive sector. The association emphasizes that these tariffs will not only raise prices for American consumers and disrupt import channels but also adversely affect US manufacturers producing vehicles for export—since European car makers, who are major contributors to the US economy through job creation and tax revenue, export a significant portion of their US-made vehicles. At a time of intense industry transformation and global competition, ACEA is urging the EU and US to engage in immediate dialogue to prevent a trade war that could hurt both economies. Representing 16 major European manufacturers, ACEA also highlights the automotive industry’s substantial economic contributions in Europe, including millions of jobs, significant tax revenue, and a robust trade surplus.

(PRESS RELEASE) BRUSSELS, 27-Mar-2025 — /EuropaWire/ — The European Automobile Manufacturers’ Association (ACEA) has expressed profound concern following the US President’s announcement of new tariffs targeting the automotive sector. At a critical juncture in the industry’s transformation and amid intensifying international competition, ACEA warns that these measures could have far-reaching negative implications.

“European automakers have been key contributors to the US economy for decades—investing significantly, creating jobs, boosting local economic growth, and generating substantial tax revenues for the US government,” stated Sigrid de Vries, ACEA Director General. “We implore President Trump to recognize that the imposition of tariffs will not only harm global automakers but will also undermine domestic manufacturing in the United States. These tariffs will impact imports, potentially raising costs for American consumers, and will also affect automotive parts, thereby jeopardizing the operations of US-based car production intended for export. Notably, European manufacturers export between 50% and 60% of the vehicles produced in the US, making a vital contribution to the nation’s trade balance.”

ACEA calls for immediate dialogue between the European Union and the United States to avert a trade war and mitigate the potentially damaging consequences of these tariffs on both sides of the Atlantic.

The announcement comes at a time when the automotive industry is facing not only a transformative phase but also fierce international rivalry. ACEA represents 16 leading European car, van, truck, and bus manufacturers—including BMW Group, Daimler Truck, Ferrari, and Volkswagen Group—and underscores the significant role the industry plays in Europe. The automotive sector supports 13.2 million jobs, accounts for over 10% of all manufacturing employment, generates €383.7 billion in tax revenue, and contributes 7.5% to the EU’s GDP. Additionally, it sustains a €106.7 billion trade surplus and invests approximately €72.8 billion annually in research and development, representing 33% of the EU’s total R&D spending.

For more detailed information, please visit www.acea.auto and follow ACEA on Twitter and LinkedIn.

Media Contacts:

• Ben Kennard, Head of Communications, bk@acea.auto,  +32 (0) 2 738 73 17
• Julien Hoez, Media Relations Manager, jh@acea.auto, +32 (0) 2 738 73 45

SOURCE: ACEA