ECB’s Nagel: Germany Must Step Up Protection of Car Industry Against China’s “Aggressive” Policy

24 January 2026

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Saturday that Germany needs to do more to shield its automotive industry from what he described as China’s “aggressive industrial policy”.

In an interview with German daily Der Tagesspiegel, Nagel, who heads the Deutsche Bundesbank, said that US tariffs were “harming everyone,” adding that the countries most affected were those where higher duties had already pushed up consumer prices, “above all in the US.”

Nagel said it was still too early to assess the full impact of tariffs on German economic growth, noting that the trade conflict could escalate again at any time.

Regarding the effect of Chinese policies in the German automotive sector, he said that more had to be done “[b]efore one of our core industries falls victim to aggressive industrial policy,” adding that Europe also had to define its red lines about China and adhere to them.

He described political attacks on US Federal Reserve Chair Jerome Powell as “absurd,” and said that while European governments had professed commitment to central bank independence, he had observed some political forces questioning it.

“Of course, though, I am seeing political currents that are calling into question Europe’s process of unification with the euro and the European Central Bank,” he said. “Ultimately, it comes down to the public. Independent monetary policy relies on public support.”

Asked whether he would be ready to face similar attacks as a potential future ECB president, Nagel said the issue of the presidency was not currently under discussion, adding that “all members of the ECB Governing Council would essentially be eligible for this role.”