Madrid Times

España Viva: Your Window to Madrid and Beyond
Wednesday, Apr 02, 2025

European Automakers Seek Dialogue with Trump to Avoid Tariffs

European Automakers Seek Dialogue with Trump to Avoid Tariffs

European car manufacturers plan meetings with U.S. President Donald Trump in response to proposed tariffs on imported vehicles.
European automotive manufacturers are organizing a series of meetings with U.S. President Donald Trump following his threats to impose tariffs of up to 100% on imported vehicles.

This initiative, led by John Elkann, chairman of Stellantis Group, aims to establish connections with the new administration amid potential economic and trade policy shifts.

According to industry sources, key executives from major European automakers with operations in the United States are expected to hold discussions with Trump's administration.

These discussions come in light of significant upcoming changes in U.S. economic and trade policies under Trump’s leadership.

John Elkann has already met with President Trump twice before his formal inauguration, citing concerns over the potential impact of tariffs on countries like Mexico and Canada, where Stellantis maintains critical manufacturing operations.

Stellantis operates assembly plants in Saltillo and Toluca, Mexico, producing RAM trucks and Jeep Compasses, respectively.

The company also has facilities in Ontario and Windsor, Canada, where Chrysler and other models are manufactured.

President Trump, upon taking office, has not immediately enacted the tariffs.

However, he has expressed intentions to impose a 25% duty on imports from Canada and Mexico starting February 1st, with a possible escalation to a 100% rate for imports from regions such as Europe and China.

In his inaugural address, President Trump also reversed an executive order from 2021 signed by his predecessor, Joe Biden, which aimed to ensure that half of all new vehicles sold in the United States by 2030 would be electric.

Volkswagen, one of the affected European manufacturers, voiced concerns over the potential economic impact of the proposed tariffs on American consumers and the global automotive industry.

Volkswagen has extensive manufacturing operations in Mexico, including its largest plant in the country with an annual production capacity of about 350,000 vehicles, all intended for sale in the U.S. market.

Additionally, Volkswagen plans to import vehicles from China through its Cupra brand, which could face a 100% penalty tariff, threatening its expansion plans in the U.S.

BMW and Mercedes-Benz, other European automakers with significant stakes, also face potential challenges from Trump’s protectionist policies, which favor domestic manufacturing.

In response, European manufacturers are expected to propose increasing production within the United States during the upcoming meetings.

This move could help them avoid tariffs and take advantage of proposed tax incentives, reduced energy costs, and streamlined bureaucratic processes under Trump's administration.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Europe Pursues Digital Autonomy Amid Strained Transatlantic Relations
OpenAI Achieves Unprecedented $40 Billion Funding Boost
Barcelona footballer Dani Alves cleared of rape allegations.
OpenAI Launches a New Image Generation Tool for ChatGPT
Ex-FIFA President and French Football Icon Exonerated of Corruption Allegations
American Brands Face Consumer Boycott in Europe Amid Escalating Trade and Political Tensions
Istanbul Mayor Ekrem Imamoglu Imprisoned on Corruption Allegations Amidst Political Unrest
European Countries Set to Boost Defense Budgets in Response to Changes in U.S. Assistance
Thousands Rally in Amsterdam to Protest Racism and Fascism.
Revealing the Electromagnetic Characteristics of the Great Pyramid of Giza
Labour MPs Introduce Campaign to Combat Harmful Influencers and Advocate for Positive Masculinity
EU Charges US Tech Giants with Violating Digital Regulations
European Union Moves Toward Joint Debt for Military Spending
Inquiry: Social Media Platforms Sanctioned Advertisements Featuring Anti-Semitic and Anti-Muslim Material in Germany
French Prime Minister Bayrou Emphasizes Position Against US Tariff Threats
DOGE has found that there are 394 million recipients of Social Security in the United States.
FBI Issues Alert on Increasing Smishing Scams Aimed at Mobile Users
The EU and Canada Declare Countervailing Tariffs in Response to U.S. Steel and Aluminum Tariffs
Romania Excludes Top Presidential Contender Călin Georgescu from Election Repetition
Pope Francis Displays Signs of Recovery, Yet His Hospitalization Persists.
Leak of Radioactive Coolant Reported at Europe’s Largest Nuclear Reactor
Russian Teacher Under Investigation After Explicit Content Incident in Classroom
Poland Plans Comprehensive Military Training for All Adult Males Amid Enhanced Defense Initiatives
Trump Discovers Negotiating with Russia Less Challenging than with Ukraine Amid Continuing Conflict
EU Member States Endorse Gradual Rollout of Entry/Exit System
Pope Francis's Health Status: Vatican Reports Stable Condition
MPs from Across the Parties Express Worry About Proposed Reductions to the UK Aid Budget
U.S. Sets Up Strategic Cryptocurrency Reserve, Triggering Market Rally
Zelenskyy Convenes with UK Prime Minister Starmer During Rising US Tensions
Here, unelected President Zelensky meets with two top American democratically elected officials who are neither stupid, nor bribed, nor blind
Pope Francis Admitted to Hospital Due to Pneumonia Faces Breathing Difficulties
Katy Perry to Participate in All-Female Space Team on Blue Origin Mission
Apple Sued for Allegations of Deceptive Carbon Neutrality Claims Regarding Watches
US President Asserts NATO Membership for Ukraine Is Off the Table
Germany's Election Outcomes: Migrants Confront Insecurity as Far-Right Support Grows
Unelected President Zelenskiy suggests he will step down only if the unthinkable occurs: Ukraine becomes a NATO member.
German Election Polls Indicate Change as Conservatives Take the Lead and the Far Right Makes Strides
Research Examines Possible Connection Between COVID-19 Vaccines and Post-Vaccination Syndrome
American Airlines Flight Rerouted to Rome Following Bomb Threat
German Chancellor Recognizes Party Loss in National Elections
Trump Commends German Election Outcomes as 'Fantastic Day for Germany'
German Political Leaders Respond to Election Outcomes
Preliminary Exit Polls Suggest Conservative Advantage in German Election
The US may restrict Ukraine's access to Starlink internet services due to mineral concerns.
Stabbing Incident in Mulhouse, France: One Fatality, President Condemns Islamist Terrorism
Vatican Declares Pope Francis' Health Status as 'Critical'
U.S. and Hungarian Officials Engage in Dialogue on Economic Collaboration and Sanctions Strategy
Tech Giants Ramp Up Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation About Succession
Zelensky Calls on World Leaders to Back Peace Amidst Strains with Trump
×