Car behemoth Volkswagen warned today against "one-sided protectionism" after the United States said it was considering new taxes on auto imports in the name of national security.
"One-sided protectionism has never helped anyone in the long term. Only free and fair trade secures increased prosperity," a spokesman for the group based in Wolfsburg, Germany told AFP.
American Commerce Secretary Wilbur Ross announced Wednesday he had initiated a so-called Section 232 investigation on auto trade -- which would provide the legal basis to impose tariffs, if his department finds imports threaten US national security -- after speaking with President Donald Trump on the matter.
"Core industries such as automobiles and automotive parts are critical to our strength as a nation," Trump said in his own statement.
Volkswagen responded that "working together as partners is the basis for prosperity, employment and growth among all involved." Cars are a keystone industry in Germany, Europe's largest economy.
The sector accounted for some 28.6 billion euros ($33.6 billion) of the nation's 111.5 billion euros in exports to the US last year, according to figures from the Chambers of Commerce and Industry (DIHK).
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But many German firms like Volkswagen, BMW or Mercedes-Benz maker Daimler also operate major factories in the US.
In its own statement, BMW noted that its 10,000-employee plant in Spartanburg, South Carolina is its biggest worldwide -- while adding that "barrier-free market access is a decisive factor" for its business.