US President Donald Trump has escalated trade tensions with Europe by threatening to impose punitive duties on countries supporting Greenland against US pressure to acquire the territory, prompting sharp warnings from the German automotive industry, Automotive News reported.
The VDA said the proposed charges — 10% from February 1, which will rise to 25% in the absence of an agreement — would entail "enormous" costs for European automakers, increasing the impact of the existing 15% U.
S. duties on EU car exports. Hildegard Muller, President of the VDA, called on Brussels for a coordinated strategic response. German manufacturers are already under pressure: Volkswagen estimates the cost of duties in 2025 at up to 5 billion euros, and Mercedes— Benz, Porsche and BASF have also suffered losses.
German business leaders condemned the link between Trump's geopolitical demands and economic sanctions as unacceptable, warning that capitulation would bring further pressure. This dispute now threatens the broader trade agreement between the US and the EU: lawmakers said they could block the ratification of the July agreement on the imposition of 15% duties, and European Parliament spokesman Manfred Weber said approval of the agreement was no longer possible due to the threat to Greenland. Opposition intensified after Washington expanded duties on steel and aluminum to more EU goods, and U.
S. Trade Representative Jamison Greer accused the EU of failing to meet commitments, putting negotiations at risk of dragging on.
