Critics, including the SPD and various industrial sectors, lambast the EU-US trade agreement as an unfair arrangement.
The EU-USA trade agreement, aimed at resolving the long-standing trade conflict, has sparked sharp criticism from the Social Democratic Party (SPD) and German industry. The deal, which imposes a 15% tariff on EU exports to the US while granting the US duty-free access to the EU market, is perceived as a sign of the EU's weak position in international trade.
Hildegard Müller, president of the Association of the Automotive Industry, sees the deal on car tariffs between the EU and the USA as an improvement, but warns of serious consequences for the competitiveness of the European industry. Müller notes that two-thirds of the cars imported from the United States to Germany are from German manufacturers. However, the German automotive industry faces billions in losses annually due to the imposed tariffs, with companies like Audi reporting €600 million lost in the first half of 2025 alone.
The German steel industry is also unsettled, as there was no agreement on steel exports to the US, exacerbating sector vulnerabilities. The deal is viewed as a poor compromise that damages the closely linked transatlantic economies, with warnings that it will cost Germany around €6.5 billion in GDP in the first year.
Politicians including SPD figures and industry leaders argue the agreement favors US economic interests, including provisions for large EU direct investments into the US and increased US energy purchases, which harm Germany’s economic sovereignty. In response, the SPD and German policymakers are calling for political reforms including a reassessment of the EU’s negotiation approach toward trade deals, strengthened strategic industry policies, clear consequences for perceived weak handling of negotiations, and pressure to enhance long-term economic stability.
Esra Limbacher, secretary-general of the SPD in Saarland, criticizes EU Commission President von der Leyen for a deal allegedly detrimental to the steel industry. Deputy SPD leader Achim Post warns of potential negative impact on key industries due to the EU-USA trade agreement, describing it as "toxic". Sebastian Roloff, economic policy spokesman of the SPD parliamentary group, expresses criticism towards the agreement, stating it reflects the EU's weak position in international trade.
Müller's comments indicate that the tariffs are just the tip of the iceberg when it comes to the EU's lack of competitiveness. Müller identifies high energy costs, labor costs, taxes, regulations, and more as factors contributing to the EU's lack of competitiveness. Müller calls for political reforms to strengthen the competitiveness of Europe.
For US consumers, the deal will ultimately result in higher prices. Müller, who raised the concern about the impact on investments and consumers in the German automotive industry, also states that the American consumer is the loser in this deal. According to Sebastian Roloff, further work is needed at the next opportunity in the areas of steel and pharmaceuticals in the EU-USA trade agreement.
In conclusion, the SPD and German industry voices advocate for more assertive and balanced trade policies that safeguard Germany’s export-heavy economy while calling for political reforms to improve EU negotiation strength and strategic industrial autonomy in critical technologies and sectors.
- The Association of the Automotive Industry's president, Hildegard Müller, believes that the EU-USA trade agreement could have serious consequences for the competitiveness of the European industry, particularly in sectors like automotive and steel.
- Müller, along with German policymakers and political figures such as Esra Limbacher and Sebastian Roloff from the SPD, argue that the agreement seems to favor US economic interests, potentially harming Germany’s economic sovereignty and causing billions in losses for key industries.
- US consumers may face higher prices due to the EU-USA trade agreement, as stated by Müller, who also expressed concern about the impact on investments and consumers in the German automotive industry. These issues highlight the necessity for more assertive and balanced trade policies that protect Germany’s export-heavy economy while ensuring strategic industrial autonomy in critical technologies and sectors.
