'Avoid potential trade conflict with the US': Mercedes CEO cautions European Union - Video

Ola Källenius, the CEO of Mercedes-Benz and President of the European Automobile Manufacturers' Association (ACEA), has emphasised the importance of the European Union (EU) taking proactive measures to avoid a potential trade conflict with the United States.

The automotive sector, a significant contributor to the EU's economy, is currently navigating a complex landscape marked by global competition and the transition to electric and hydrogen zero-emission vehicles.

Källenius highlighted that the industry faces unprecedented challenges, including the need to comply with stringent CO2 targets and the potential imposition of new tariffs by the US.

He further urged EU leaders to seek a "grand bargain" with the US to prevent a trade war that could have detrimental effects on both economies. He pointed out that European automakers export tens of billions of dollars worth of cars to the US annually, and the threat of high tariffs could disrupt this vital trade relationship.