German automotive supplier Continental is bracing for significant financial impact after President Trump announced increased tariffs on European imports last week, with potential costs reaching tens of millions of euros if the measures extend to tire products.
The company’s Chief Financial Officer Roland Welzbacher revealed Wednesday that Continental could face additional expenses in the “mid to high double-digit million euro” range should the new tariff structure include tires in its scope.
European automotive component manufacturers are experiencing heightened uncertainty following Trump’s decision to raise import duties on vehicles and trucks from the European Union to 25 percent, up from the previously established 15 percent rate. The administration justified the increase by claiming the EU failed to meet obligations under existing trade agreements.
Welzbacher informed Reuters that Continental’s current financial projections do not account for these potential tariff increases, as the company awaits specific details before determining its response strategy.
“Would require again to think about measures to offset this cost like we did last year. So we need to focus on cost savings, and obviously we also need to think about commercial measures,” Welzbacher explained when discussing how the company might address the additional financial burden.
