A negotiated solution with the U.S. must be the priority to avoid unintended retaliation on critical imports
in CLEPA, 07-04-2025
In the context of the Strategic Dialogue on the future of the automotive industry, automotive suppliers, including representatives from Bosch, Valeo, and CLEPA, emphasised the urgent need for a balanced and forward-looking transatlantic trade relationship during a high-level meeting with European Commission President Ursula von der Leyen. Representing a vital pillar of Europe’s industrial base, suppliers underlined the ripple effects of recent U.S. tariffs on automotive, steel, and aluminium exports—not just for vehicle manufacturers but across the entire supply chain.
Benjamin Krieger, Secretary General of CLEPA said:
“Tariffs imposed by the Trump administration are a significant threat to the EU automotive supply industry, endangering €13.9 billion in exports to the US and up to 125,000 EU jobs. Automotive suppliers are even more exposed than manufacturers, as lower exports of vehicles will hurt them, and further tariffs on car parts are expected in May. While we support a measured EU response, a negotiated solution with the U.S. must be the priority to avoid unintended retaliation on critical imports—such as specialised plastics, semiconductor inputs, and high-grade steels—that are hard to replace.
We can’t control global trade policy—but we can shape our own policy response. Now is the time to focus on what’s within our reach: smart, targeted action at home that strengthens Europe’s position in an uncertain world. Maintaining the Utility Factor for PHEVs is a crucial first step as their high EU value add can help safeguard thousands of jobs. It’s an immediate lifeline we can throw to the sector. We also need to adjust the CO2 regulation to reflect the reality of today’s market and support all low-carbon technologies. Moreover, cutting the bureaucratic red tape through the Simplification Omnibus approach and accelerating trade agreements with Mercosur and Mexico would reinforce Europe’s competitive edge, ensuring we hold on to our strategic know-how and keep production on our shores. This isn’t protectionism—it’s about safeguarding resilience for the long haul.”
