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AmCham Germany urges US and EU to find fair solution to avoid possible automobile tariffs


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Berlin, March 13, 2019 - Given the economic harm of possible US tariffs on automobiles and automotive parts, AmCham Germany calls for constructive dialogue between the US and the EU - for instance, within the framework of a EU-US free trade agreement. Current protectionist trade measures have led to uncertainty for transatlantic business and further escalation would be detrimental for both economies.

Germany is among the leading contributors of automotive foreign direct investment in the United States, with close to 2.9 million automobiles produced by European manufacturers in the US in 2017 alone. This shows the commitment of both German and European auto manufacturers and suppliers to the US marketplace.

European and German automotives not a threat to American national security

The European and German automotive sectors are not a threat to American national security and AmCham Germany is convinced that the US and the EU can find solutions that are valuable to both parties, e.g. within the WTO framework. AmCham Germany thus supports the current talks on a potential transatlantic trade agreement and believes that these talks should focus both on short and long-term goals, providing a framework for a sustainable, rules-based and equitable agreement for both parties.

As Frank Sportolari, President of AmCham Germany, stated: "At the end of the day, tariffs would result in higher production costs for car manufacturers, which would not only be passed on to consumers but also weaken the US economy's competitiveness in the long-run. Moreover, the unilateral imposition of tariffs by the US Administration could set off a chain reaction of counter tariffs from other countries and regions, thereby weakening the transatlantic economic partnership." European auto manufacturers directly and indirectly employ more than 470,000 US-Americans. Additionally, approximately 60 percent of EU-owned automobiles produced in the US are exported to third countries. Measures harming these companies would therefore directly weaken the US economy and employment.

 

Press Contact:

Katharina-Luise Kittler
presse(at)amcham.de
+49 030 2130056 - 34

 

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