In recent months, the United States has made headlines for its decisions to impose additional tariffs on various goods, particularly targeting imports such as steel, aluminum, and automobilesThis protectionist stance has sparked concern across the globe, and in a recent interview, Hildegard Müller, the president of the German Automotive Industry Association, shared her apprehensions regarding these developmentsShe articulated that such tariffs could impede global economic growth and inflict harm on German automotive investments and employment within the U.S. market.

Müller highlighted that German automakers have significant investments in the United States and that the imposition of tariffs could escalate operational costs, thereby undermining their competitive edgeShe stressed the need for dialogue to resolve trade disputes to prevent further escalation of tariffs. “Free trade and an open global market are central to the success of the German automotive industry, and any form of protectionism can damage the sector,” she stated passionately.

Turning to cooperation between the automotive industries of China and Germany, Müller emphasized that China is not only an essential market for the German automotive sector but also a key driver in the global development of electric vehicles and digital technologyShe remarked on the robust collaboration between the two countries in the domains of electric vehicles and battery technologies, envisioning a future where the German automotive industry would deepen its cooperation with China in technical innovation and market expansion.

Addressing the European Union's anti-subsidy probe regarding Chinese electric vehicles, Müller remarked that tariffs should not be instruments of trade protectionism but rather issues to be resolved through dialogue and collaborationShe reiterated the German automotive industry's desire to see a fair and mutually beneficial trade agreement between Europe and China, which could secure the healthy development of the electric vehicle market.

However, Müller acknowledged several hurdles the German automotive sector currently faces

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The industry is navigating challenges such as intensifying global competition, energy transition, digital transformation, and geopolitical uncertaintyShe asserted that despite these hurdles, the German automotive sector remains competitive worldwide, especially in technology innovation and product qualityYet, as the global market evolves—particularly with the swift advancements in electric vehicles and digital technologies—German automotive manufacturers must expedite their transformation processes.

From Müller's perspective, the German automotive industry is proactively driving towards electrification and digitalization. "In the next five years, we plan to invest €320 billion in research and innovation, with €220 billion earmarked specifically for electric vehicles and related infrastructure," she announcedShe pointed out some noteworthy advancements that Germany has already achieved in areas such as autonomous driving, connected vehicles, and artificial intelligence technologies, while also recognizing the necessity for further investment.