Impact of Trump’s Tariff Plans on Global Automakers

U.S. President Donald Trump's proposed tariffs could raise car prices and affect global automakers, warns Germany's VDA. Trump threatens 25% tariffs on Canada and Mexico to boost U.S. production. Automakers, including Volkswagen and Stellantis, engage in talks with Trump amid concerns over economic impact.

U.S. President Donald Trump faces mounting concerns from the global automotive industry over his proposed tariff plans. Germany's VDA warns these could lead to higher car prices for American consumers, as auto stocks tumbled on the prospect of elevated U.S. import duties.

Hildegard Mueller, president of Germany's leading auto association, VDA, highlighted the inflationary risks of Trump's proposed tariffs at a press conference. Trump's campaign promise to reduce inflation seems at odds with these tariff threats, creating tensions that automakers hope to resolve through further dialogue.

As Trump looks to increase domestic car production, potential 25% tariffs on Canada and Mexico threaten the established supply chain. Automakers and suppliers worldwide, from Volkswagen to Stellantis, are navigating these economic uncertainties while negotiating with the U.S. administration for favorable outcomes.

(With inputs from agencies.)