‘If VW disappears, people won’t stay in the town anymore’ – fears over Trump’s car tariffs | World News

In one factory in East Germany, they pump out a car section every second, cutting and printing millions of pieces destined for the country’s mega car industry.

The Hennginated plant sits on the edge of Zwickau, a city where the car is king. And when it comes to vehicles, America is the most important trade partner of Germany.

In 2024, the export of motor vehicles to the US reached a total value of € 36.8 billion (£ 30.7 billion), according to the German Car Association.

Donald Trump’s decision to make 25% tariffs on all passenger cars and light commercial vehicles imported into the US is a major problem for both manufacturers and suppliers.

“Such rates would be very difficult. It could make companies decide to move to the US to produce there, which also means that work is lost here in Germany,” explains website manager Matthias.

Volkswagen is now the most important local employer who offers approximately 10,000 jobs.

Read more: Conduled Trump’s car rates

But car building is in people’s blood, with the first vehicle made here about 120 years ago.

The City Museum proudly displayed cars through the ages.

One room houses shiny silver racing cars, another brightly colored trabants.

The city developed cars from the German Empire to the current modern Republic, explains Thomas Stebich, head of August Horch Museum.

While the impeccable car performances celebrate the pioneers of the city, rates make very uncertain about the future.

‘If no one in the US buys a German car or fewer people buying German cars, it will of course have an impact because we have to build a large number of cars here [for jobs]“Say Stebich.

If you want to understand how the automotive industry is for the German identity, then think of the UK on its high.

About 700,000 people work in the industry, earning more than 540 billion euros a year.

But rates are not the first storm German car manufacturers to defend.

High energy and labor costs, competition from China and the weaker domestic demand due to the diseased economy mean that the German auto industry has cut jobs.

Audi recently announced that it will cut 7,500 administration posts by 2029.

By 2030, VW loses 35,000 roles.

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This is not the only ones, but Trump’s rates news comes as a new blow to workers.

A representative of the VW Works Council in Zwickau canceled our interview for crisis talks.

All the workers we met were pessimistic and deeply concerned about the plant and the future of the city.

Their concern is shared by Aliriza Oernek, who owns four restaurants in Zwickau.

He says over the past few years they have seen many of their young people leave the area to look for work elsewhere. He fears that fresh pain of rates will injure the entire community.

“Volkswagen is the largest employer in Zwickau, the most important source of money for people living here. If they disappear, people will no longer stay in the city,” he says.

Like its peers, Volkswagen closely watches the developments around rates and assesses how it can affect the supply chain and production.

All eyes are currently on the European Union to see how it will repay.

In a statement, a spokeswoman for VW Group said they “share the assessment of most experts that US rates and any counter-tariffs will have negative effects on growth and wealth in the US and other economic areas … and will continue to plead for constructive discussions”.

Thus, while car manufacturers have an impact, Germany promised that it “does not lie down”, asking for a ‘fixed response’ of the EU, as he tries to protect its car manufacturers from this new US attack.