Amid rising worries over the possibility of a US-led international trade war, CLEPA, the European automotive suppliers’ trade association, has called for policymakers to work on bilateral trade agreements “for the benefit and protection of all players”.

In a new year address, Matthias Zink, CLEPA President and CEO Powertrain & Chassis, Schaeffler, also said that “tariffs are not the long-term answer”.

Zink stressed that the industry and the the European economy are “at a crossroads in 2025”.

“As our industry undergoes its transformation, we need appealing business conditions and clear pathways to achieve our goals. This means having regulations that welcome all technologies, cut down on foreign dependence, and help us reach climate targets faster,” he said in the address. “All of this, while facing increasing uncertainty in global politics. The incoming US administration is threatening Europe with tariffs and further limitations on international trade.

"On the other hand, the EU's trade sanctions on China can lead to retaliation. It is an increasingly difficult balancing act for EU between protection and openness. But tariffs are not the long-term answer. Policymakers must work on bilateral trade agreements for the benefit and protection of all players.”

He concluded that in a world full of uncertainty, “we as CLEPA are here to actively support our stakeholders and advocate for smarter, safer, and more sustainable mobility for the European Union. For the benefit of the EU single market and its people.”

Recent CLEPA surveys suggest that almost two thirds of Europe’s supplier base are struggling to maintain profit margins above 5%, putting pressure on long-term investments. Furthermore, CLEPA estimates that 54,000 European automotive supplier sector jobs were lost in 2024.