Interview: German auto association chief warns additional tariffs could fuel inflation, burden consumers

　　BERLIN, Jan. 26 (Xinhua) -- U.S. tariffs on imported goods could push up inflation, burdening consumers with higher prices and exacerbating global economic uncertainty, Germany's auto association chief has warned.

　　In a recent interview with Xinhua at the annual press conference of the German Association of the Automotive Industry (VDA), VDA President Hildegard Mueller, emphasized the need for stronger European unity to tackle the challenges posed by these tariffs.

　　"Tariffs inevitably trigger retaliatory measures, which worsen the economic environment and threaten jobs," Mueller said. "The German automotive industry alone supports over 140,000 jobs in the United States, and these tariffs would ultimately mean higher prices for consumers, a harmful scenario given the current economic pressures."

　　She warned that additional tariffs would disrupt global supply chains, exacerbating challenges already afflicting the automotive industry.

　　"With the automotive industry under strain from the transition to electric vehicles, new trade barriers could severely impact production systems, supply chains and manufacturing networks," she said.

　　The impact, she added, is not limited to the United States and Europe. "Mexico and Canada are considering tariff measures as well, and geopolitical tensions are rising. This growing wave of protectionism will only drive up global production costs."

　　Ultimately, the cost of tariffs would be passed on to consumers, further fueling inflation, a result that contradicts Donald Trump's campaign promise to reduce it, Mueller pointed out.

　　According to Mueller, German automakers have significantly ramped up production in the United States. By 2023, German companies were producing approximately 908,000 vehicles in the United States, with half of them designated for export.

　　"These figures highlight that the economic relationship between Germany and the United States is built more on cooperation than competition," Mueller said. "Instead of dividing markets with tariffs or trade barriers, we should focus on shared interests."

　　Mueller deemed China both an important partner and a competitor for Germany's automotive industry.

　　"We welcome German automotive production in China, and we view it positively when Chinese companies set up production facilities in Germany or Europe," she said. "This two-way collaboration fosters job creation, exchange and regional development."

　　Looking ahead, Mueller stressed that openness and cooperation are essential for overcoming industry challenges and achieving shared prosperity.

　　"Collaboration will be key to helping the global automotive sector navigate future challenges and drive progress," she noted. ■