European auto suppliers body calls for solutions, not tariffs

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European auto suppliers body calls for solutions, not tariffs

^{Published on 2025-03-27 22:01:36 - Reuters}

The European association of automotive suppliers (CLEPA) on Thursday called on policymakers in Europe to prioritise finding solutions over trade barriers after U.S. President Donald Trump announced 25% tariffs on foreign-made vehicles.

The European auto suppliers' association, CLEPA, has urged the European Union to seek solutions rather than impose tariffs in response to the U.S. Inflation Reduction Act (IRA), which offers tax credits for electric vehicles (EVs) assembled in North America. CLEPA's Secretary General, Sigrid de Vries, emphasized the need for a transatlantic agreement to avoid a trade war, highlighting that the IRA's local content requirements could disadvantage European manufacturers. She suggested that the EU should focus on enhancing its own competitiveness through measures like faster permitting for battery plants and better access to raw materials, rather than retaliating with tariffs. This call comes amidst concerns that the IRA could lead to a shift of EV production to the U.S., potentially disrupting global supply chains and affecting European jobs and investments.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/european-auto-suppliers-body-calls-solutions-not-tariffs-2025-03-27/ ]

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