Urgent European countermeasures needed against American tariffs jeopardizing auto component manufacturers

The European Union (EU) is taking decisive action in response to the US tariffs on imported European cars and certain goods, such as steel and aluminium. The EU's goal is to safeguard essential know-how and technological leadership, and become more competitive in the global market.

Starting with Mercosur and Mexico, the EU plans to advance trade agreements to counterbalance the impact of the US tariffs. This strategic move is part of a broader plan that includes reducing red tape, lowering energy costs, and strategically stimulating local demand.

EU trade ministers will meet on Monday, 6 April, to discuss these measures in detail. If approved, these retaliation measures would take effect on April 16.

The US tariffs are causing concerns for the EU's economy, particularly for its automotive suppliers. EU-made components power vehicles exported to the US, and potential retaliation measures on certain US-sourced products could have additional impacts.

The Secretary General of our website, Benjamin Krieger, has expressed concern about the negative effects of US tariffs on automotive suppliers and trade relations between the US and EU. He emphasises the need for unity and determination in the EU's response.

The EU is also calling on its institutions to respond with unity and determination to safeguard its economy from the US tariffs. The measures from the Trump administration are negatively affecting trade relations on both sides of the Atlantic.

A possible vote on a first set of retaliation measures from the EU in response to US Section 232 tariffs is scheduled for Tuesday. If approved, these measures could shape Europe's economic position for years to come.

It's worth noting that EU suppliers account for a third of foreign direct investment in the US. The EU's strategic approach to trade could have far-reaching implications for both economies.

The US tariffs on steel and aluminium, taking effect today, are causing concerns for the EU's economy. The US tariffs on automotive parts are expected to take effect on May 3, 2025.

In addition to advancing trade agreements and becoming more competitive, the EU aims to create the right conditions for a fair deal with the US. The EU's strategic response to the US tariffs underscores its commitment to protecting its economy and maintaining fair trade relations with its global partners.