The European automotive industry may face significant challenges in the next decade, with a recent study predicting a potential loss of 186,000 jobs. This risk could increase if U.S. President-elect Donald Trump follows through on his campaign promise to impose a 10% tariff on European imports, a move that could seriously impact EU economic growth. Germany’s automotive sector, already under pressure, would be one of the hardest hit, especially as Volkswagen recently announced the closure of three plants as the industry shifts toward electric vehicle production.

The Association of the German Automotive Industry (VDA) is calling for measures to prevent new tariffs, with spokesperson Simon Schuetz stressing the importance of avoiding another trade conflict. The steel industry also remains vulnerable, as existing tariffs from Trump’s previous term have already dented exports. With unresolved tariff issues on steel and aluminum, further trade barriers could intensify economic strain across the EU’s industrial sectors.