German carmakers say Trump tariffs would hurt US consumers, industry – Reuters

U.S. President Donald Trump’s tariff plans would mean higher car prices for U.S. consumers and hit global automakers, Germany’s powerful car industry warned on Tuesday, as auto stocks fell on the prospect of higher U.S. import duties.

Hildegard Mueller, the president of Germany’s VDA auto association, told an annual press conference that Trump’s threatened tariffs would drive up U.S. inflation.

“Donald Trump promised in his election campaign to reduce inflation,” she said. “In this respect, we are hoping for further discussions on this topic.”

Trump, who took office on Monday, did not immediately implement the wide range of tariffs he had promised, but said they were still an option and indicated that tariffs of 25% on Canada and Mexico could be imposed as early as Feb. 1.

In the past, Trump has used the threat of tariffs to push automakers to move more production to the United States.

Global automakers make cars in Mexico for sale in the United States, and the Central American country is an integral part of the supply chain for U.S. auto production.

Major suppliers like Bosch and Continental have been working on ways to move some production and mitigate the impact, but U.S. tariffs on Mexican auto imports would hurt U.S., European, Japanese and South Korean automakers and suppliers alike.