"Punitive duties can't be the answer," Bernhard Mattes,
president of Germany's VDA automotive industry association, said
in a statement.
"A trade war between the USA and Europe must be avoided at all
costs. In such a trade war there are only losers on all sides."
Trump at the weekend threatened to tax European car imports if
Brussels retaliates against his plan to slap tariffs on imports
of steel and aluminum as part of his "America First" trade
policies.
The VDA, which represents automakers Volkswagen <VOWG_p.DE>, BMW
<BMWG.DE> and Daimler <DAIGn.DE>, pointed out that their auto
production in the United States at 804,000 units was greater
than their exports from Germany and was growing.
German exports amounted to 494,000 cars last year - a fall of a
quarter since 2013.
More than half of the vehicles made in the United States by
German carmakers are exported, the VDA added, supporting the
U.S. foreign trade balance.
Trump's threat to launch a trade war has encountered resistance
from fellow Republicans, including Senator Lindsey Graham of
South Carolina, where a BMW plant employs 9,000 workers.
(Reporting by Ilona Wissenbach; writing by Douglas Busvine;
editing by Maria Sheahan and Jason Neely)
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