The announcement of new tariffs from the USA shake Europe’s auto industry. Experts warn of significant effects of everything for German manufacturers. The industry association VDA calls for quickly discussions with US President Donald Trump to avert the tariffs. But time is urging: Already on April 3, the additional taxes of 25 percent should come into force on auto imports in the USA.
The additional tariffs represented a significant burden for both companies and the closely interwoven global supply chains of the automotive industry, said VDA President Hildegard Müller. They would have negative consequences for consumers, also in North America. “The consequences will cost growth and prosperity on all sides,” said Müller. Müller called for a bilateral agreement between the United States and the EU.
EU plans countermeasures
The EU immediately announced a determined answer if the United States would hold on to the auto customs plans. If necessary, one will react robust, quickly and well tailored to all unfair and counterproductive measures in the United States, said a spokesman for the European Commission responsible for EU trade policy in Brussels.
In the meantime, the speaker did not want to comment on questions about details of possible countermeasures. The aim would then be to achieve maximum effect compared to the United States and at the same time minimize the consequences for the European economy. Trump reacted promptly: If the EU and Canada act together against the United States, both were occupied with even larger tariffs, he wrote on the Truth Social online platform.
USA most important export market
The customs dispute comes at the wrong time for the already weakening German auto industry. Because the United States is its most important export market, the latest figures from the Federal Statistical Office show. No other country took as many new cars from Germany as the United States: they were at the front with a share of 13.1 percent. Almost every fourth Porsche was sold in the USA, at BMW and Mercedes the proportion was a good 16 percent each, and 8 to 12 percent for Audi and the VW brand.
VW, BMW and Mercedes have large works in the USA and sometimes operate the market there with cars that are manufactured on site. They cannot do without imports. BMW, for example, produced almost 400,000 cars in his US plant in 2024 and thus as many as were discontinued in the country. But more than half of them went to other countries. In return, other models must be introduced.
Porsche and Audi even serve the US market entirely with an import car. And even with the cars produced in the USA, the tariffs hit. Because they should later also apply to auto parts that come from abroad. Not only for parts from Europe, but also for Mexico and Canada, where numerous suppliers sit.
Sales decline feared
25 percent inches, which Trump wants to charge from April 3 in addition to the 2.5 percent applicable so far, will then become a problem. “This is a significant stress factor,” says industry expert Stefan Bratzel from the Center of Automotive Management in Bergisch Gladbach. Because such a serve can hardly be passed on to the customers. “It will only be limited.” Otherwise, many models in the United States should simply be unsalable.
The scope for action of the manufacturers is limited. Simply moving production to the USA, as Trump has in mind, is not that easy, says Bratzel. In the end, more car production should actually go to the USA. “But it doesn’t work overnight.” The necessary conversion is too complex for existing US plants.
As possible reactions, only remain at short notice: increase prices, do without profit and sell fewer cars in the USA, says Bratzel. Consequence: fewer cars are also being built. And that mainly meets the works in Europe and Mexico that deliver less to the USA. “This increases the cost pressure again.”
Manufacturers demand less instead of more tariffs
Customs met with rejection accordingly. “The entire automotive industry as well as the global supply chains and customers as well as customers will have the negative consequences to bear,” said a VW spokesman.
“Only losers would know a trade conflict between these economic areas,” said BMW. “We should discuss less instead of more trade barriers.” Consumers on both sides of the Atlantic would also benefit from this.
Similarly, a Mercedes spokesman said: “Mercedes-Benz is committed to free and fair trade that ensures prosperity, growth and innovative strength.”
Customs costs almost 0.2 percent growth
According to the German Economy Institute, almost 22 percent of total German US exports are eliminated to the auto industry. Overall, however, the consequences of the auto tariffs for economic growth in Germany will remain manageable, believes the “economy” Veronika Grimm. “The effects for Germany are likely to be limited.” According to initial calculations, the Institute for the World Economy (IFW) in Kiel is only 0.18 percentage points less growth. At least as long as there are no counter -tariffs.
The EU cannot simply leave the US criminal offenses, on the other hand, IW external trading expert Jürgen Matthes. “She has to put painful countermeasures into the shop window so that Trump gets involved with negotiations.” Trump’s customs attack comes at a very unfavorable time. “The German economy is weakening, the German carmakers and their suppliers make headlines with crisis reports.”
Special tariff protects pick-up market
The consequences of a trade war can be seen in the tariffs that the United States has already raised on heavy vehicles such as the pick-up trucks popular in the USA: Instead of 2.5 percent, it is already 25 percent there, which are supposed to double to 50 percent on April 3.. However, the European manufacturers will hardly feel this. The previous customs have already meant that the local manufacturers do not offer such cars sneaked, says Bratzel. “This effectively prevented Europeans from creating the idea of building such vehicles here in Europe.”
