European auto parts manufacturers face harsh tariff threats
The automotive sector encompasses not only car manufacturers but also, and perhaps primarily, manufacturers of car parts. Until recently, the USA was the only reliable market for European producers, but now there is only uncertainty.
Donald Trump is acting in line with the "America First" initiative, and his dynamic tariff policy raises significant concerns in the car parts manufacturing sector. He has already affected the export of aluminum and steel, materials crucial to the automotive industry. The Trump administration may impose further tariffs. If that happens, the European automotive sector – especially parts manufacturers – will face a challenging situation.
25% tariffs lead to concrete losses
For the average Joe in Europe, a 25% tariff might seem inconsequential. At most, things will become slightly more expensive. But behind this number is a real threat: the estimated elimination of 125,000 jobs, a decline in exports by billions of euros, weakened investments, and another blow to supply chains. Benjamin Krieger from CLEPA (the European Association of Automotive Suppliers) openly acknowledges that suppliers might feel this impact more acutely than the final producers.
In recent years, Europe has been losing access to markets — the conflict in Ukraine, tensions with China, inflation. For a long time, the United States remained a relatively dependable partner. If this pillar also starts to weaken, the industry could find itself in a really unfavourable position.
According to CLEPA data, six out of ten companies already assess the geopolitical situation as negative for their business, and 42% do not expect profitability this year. It's no wonder, given that costs are rising and risks are multiplying each month.
It's understandable that the European Union might be tempted to retaliate, but parts manufacturers suggest that instead of reaction, a calculated approach is needed. Europe cannot afford rash decisions. A prudent strategy is crucial - how to secure the interests of the industry without alienating key partners.
Strong words came from Tomasz Beben, president of the Association of Distributors and Manufacturers of Automotive Parts (SDCM):
A new trade war could be a turning point or a death knell for European industry. It all depends on how quickly and decisively the EU decision-makers react. The year 2025 is a critical 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.
