Daimler Workers in Germany: We Will Defend Jobs in Case of Tariffs

German workers at Daimler will defend local jobs if the luxury car manufacturer attempts to relocate part of its production to the U.S. in response to tariffs, said Roman Zitzelsberger, a member of the supervisory board at Daimler, to Reuters.

Car manufacturers worldwide are preparing for a new geopolitical order after U.S. President Donald Trump threatened to impose tariffs on imports from China and the European Union to protect American jobs.

“If this escalates into a trade war, and if everyone raises tariffs, then it will hit trade, production, and employment,” Zitzelsberger, head of the IG Metall union in the German federal state of Baden-Wuerttemberg, told Reuters.

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Trump has threatened to impose tariffs on imports of cars and auto parts from Europe. This move could impact the profits of German manufacturers that export vehicles from Europe and the U.S.

“Some car manufacturers are very flexible and can produce several models in one factory; they have an advantage when it comes to adjustments,” Zitzelsberger, who is also a board member, stated in an interview with Reuters.

BMW recently halted exports to China of the x3 SUV model from its factory in Spartanburg, South Carolina. Instead, the German manufacturer plans to produce the model in China and increase production there to levels that would exceed capacities in Spartanburg.

Employee representatives will monitor even the slightest attempts to relocate production from Germany to ensure that local jobs are not endangered.

“If such an issue arises, we will not wait for approval; we will always try to protect employment and the production of certain models in Germany,” Zitzelsberger emphasized.

Employee representatives in Germany have the right to half of the seats on the supervisory board and a veto right in making significant strategic decisions.

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In Baden-Wuerttemberg alone, home to manufacturers Porsche, Mercedes-Benz, and suppliers Bosch and Mahle, around 440,000 jobs depend on the automotive industry.

Tariffs between the U.S. and China have already impacted Daimler, the parent company of the Mercedes-Benz brand, forcing them to issue a profit warning in June, as they produce SUVs in the U.S. state of Alabama and export them worldwide, Reuters recalls.

On Wednesday, U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed at a meeting in Washington to start negotiations on removing tariffs on industrial products, as well as other trade barriers.

Trump stated that the negotiations would also address the high tariffs that the U.S. imposed on steel and aluminum from the EU, as well as tariffs on American products that Europe imposed in response.

It is still unclear whether the two sides have made progress on the contentious issue of potential U.S. tariffs on imports of cars from the EU, but Juncker stated that they agreed not to impose new tariffs during the negotiations.