US President Donald Trump has escalated trade tensions with Europe by threatening to impose punitive tariffs on countries that support Greenland against US pressure to acquire the territory, prompting sharp warnings from the German auto industry. 

The VDA said the proposed tariffs — 10% from February 1, rising to 25% if no agreement is reached — would entail “colossal” costs for European automakers, compounding the impact of existing 15% US tariffs on car exports from the EU. VDA President Hildegard Müller called on Brussels for a coordinated strategic response. German manufacturers are already under pressure: Volkswagen estimates the cost of tariffs in 2025 at up to €5 billion, while Mercedes-Benz, Porsche, and BASF have also suffered losses. 

German business leaders have condemned the linking of Trump's geopolitical demands with economic sanctions as unacceptable, warning that capitulation would invite further pressure. The dispute now threatens a broader trade agreement between the US and the EU: lawmakers have said they could block ratification of July's agreement to set 15% tariffs, and European Parliament representative Manfred Weber has said that approval of the agreement is no longer possible due to the threat to Greenland. 

Sourse: metallurgprom.org