STORY: German auto association chief warns additional tariffs could fuel inflation, burden consumers
SHOOTING TIME: file
DATELINE: Jan. 29, 2025
LENGTH: 00:01:03
LOCATION: Berlin
CATEGORY: ECONOMY

SHOTLIST:
1. various of street views in Germany
2. SOUNDBITE (German): HILDEGARD MUELLER, German Association of the Automotive Industry (VDA) President
3. various of the International Motor Show (IAA) Transportation 2024 in Hannover, Germany

STORYLINE:

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.

Addressing 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.

SOUNDBITE (German): HILDEGARD MUELLER, German Association of the Automotive Industry (VDA) President
Tariffs trigger retaliatory measures, which worsen the economic environment and threaten jobs. And these tariffs would ultimately mean higher prices for consumers, which is of course extremely harmful, especially now 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. Ultimately, the cost of tariffs would be passed on to consumers, further fueling inflation. This once again shows that both countries want to discuss common interests on an equal basis instead of dividing markets with tariffs or trade barriers.

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.

Xinhua News Agency correspondents reporting from Berlin.
(XHTV)