Trump's tariffs threaten 125,000 jobs in European auto sector
The automotive sector encompasses not only car manufacturers but also, and perhaps primarily, producers of car parts. Until recently, the USA was the only reliable market for European manufacturers, but now uncertainty is the prevailing sentiment.
Donald Trump is acting in accordance with the "America First" policy, and his dynamic tariff strategy raises significant concerns in the car parts manufacturing sector. He has already impacted the export of aluminum and steel, which are crucial materials for the automotive industry. The Trump administration may impose further tariffs, and if that happens, the European automotive sector—especially parts manufacturers—will face tough challenges.
25% tariffs lead to concrete losses
For the average Joe living in Europe, a 25% tariff might sound like something insignificant. At most, it may cause a slight increase in prices. However, this figure represents a real threat: the potential loss of 125,000 jobs, a decline in exports worth billions of euros, weakened investments, and additional disruptions to supply chains. Benjamin Krieger from CLEPA (the European Association of Automotive Suppliers) does not hide the fact that suppliers may feel the impact more severely than the final producers.
In recent years, Europe has been losing access to markets due to the war in Ukraine, tensions with China, and inflation. For a long time, the United States remained a relatively dependable partner. If this pillar also starts to wobble, the industry could face a very unfavorable situation.
According to CLEPA data, six out of ten companies already view the geopolitical situation as negative for their business, and 42% do not expect profitability this year. It's no wonder, given the rising costs and increasing risks each month.
It's understandable that the European Union might be tempted to retaliate, but parts manufacturers suggest that a rational approach is needed instead of an emotional one. Europe cannot afford hasty decisions. A well-thought-out strategy is crucial for securing the interests of the industry without severing ties with key partners.
Strong words were spoken by Tomasz Beben, president of the Association of Distributors and Manufacturers of Automotive Parts (SDCM):
A new trade war could be either a turning point or a death knell for European industry. It all depends on how quickly and decisively the EU policymakers react. The year 2025 is the last chance year for the industry. As SDCM points out in its press release, resilience is not something that arises on its own—it requires deliberate action, a well-defined plan, and timely collaboration to be effectively developed.
