Escalating Trade Tensions: Germany's Auto Industry on Edge

The German VDA auto association has expressed serious concerns over rising costs confronting both carmakers and suppliers. This comes after U.S. President Donald Trump announced potential plans to impose a staggering 30% tariff on imports from the European Union and Mexico, intensifying trade tensions.

VDA President Hildegard Mueller has labeled the situation as regrettable, with the potential for the trade conflict to further escalate. Mueller highlighted that the financial toll on companies is already reaching billions, with the numbers increasing daily, posing a significant threat to the industry.

These growing costs are impacting not only car manufacturers but also suppliers who are equally burdened by the substantial import duties. The VDA is calling for urgent action to address these challenging economic conditions.

(With inputs from agencies.)