The European car industry completely overwhelmed in the face of Donald Trump!

Just hours before Donald Trump’s inauguration, we are witnessing a deaf dialogue in Stuttgart between Brussels and European automakers.

As Donald Trump prepares to resume his duties after a brief 4-year hiatus, European automakers are raising multiple alarms over the risk of a trade war with the United States. But within the European Union itself, disagreements are widening. While industry leaders advocate for market openness to avoid escalation, the European Commission seems to favor a more protectionist stance.

Ola Källenius, CEO of Mercedes-Benz and chairman of the European Automobile Manufacturers’ Association, warned: “A trade conflict would have a significant and detrimental impact on the European Union and our industry.” The exchanges with the United States and China are crucial for the sector, as evidenced by the 15% share of the American market in Mercedes’ global sales.

In a letter addressed to Ursula von der Leyen, manufacturers urge all efforts to avoid such a scenario. They emphasize the importance of free and open trade, while Brussels, concerned about the rising influence of Chinese automakers, has already increased tariffs on imported electric vehicles.

A Deaf Dialogue

Stéphane Séjourné, who recently vacated his seat in Boulogne-Billancourt to take on the role of European Commissioner for Industry, does not seem eager to listen to automakers’ grievances and advocates a firm stance. During a client visit to Stuttgart, he outlined a plan focusing on decarbonization and the development of the European industry, with funds to support electrification and measures to reduce dependency on China. “I cannot accept that our factories are paralyzed because of geopolitical tensions,” he declared, calling for increased industrial autonomy for the EU.

While von der Leyen promises discussions with the sector, the gap remains. Automakers fear that a protectionist strategy could trigger a US response, intensifying economic tensions. On the Brussels side, the priority remains protecting the European market from environmental and industrial challenges, even if it risks clashing with industry expectations. True coordination between the EU’s climate, economic, and trade ambitions seems more essential than ever, and the automakers—who have a broader vision than politicians on current issues—are ready to help. But for now, victory is not assured…

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