Live, rolling coverage of business, economics and financial markets as Donald Trump and Ursula von der Leyen agree deal in Scotland
Germany’s car industry lobby group has expressed relief that the EU and US could reach a deal – but they are hardly overjoyed.
Hildegard Müller, president of the German Association of the Automotive Industry (VDA), said it was “fundamentally positive” that the two sides had prevented further escalation of the dispute started by Donald Trump. However, she added:
It is also clear that the US tariff of 15% on automotive products will cost German automotive companies billions annually and place a burden on them in the midst of their transformation.
The hit to Germany’s carmakers is expected to come through lost sales if they pass the tariffs on to American buyers, or through a hit to their margins if they absorb the cost themselves.
