Agency Report –
German car manufacturers on Thursday warned of dire consequences as a result of the US import tariffs on foreign-made vehicles announced by President Donald Trump.
The 25% tariff will go into effect on April 2 and apply to all cars not made in the US, meaning even US manufacturers with models made overseas would be hurt under the scheme.
The German Association of the Automotive Industry (VDA) said that the tariffs would be a considerable burden for both companies and global supply chains. VDA president Hildegard Müller said they would have negative consequences for consumers, including in North America.
“The consequences will hit growth and prosperity on all sides,” Müller said.
She called for immediate negotiations between the United States and the European Union on a bilateral agreement, which could also cover other areas.
“It would also be good to have talks on legal regulations, standards and certifications – this would bring benefits on both sides of the Atlantic and increase efficiency,” she said.
According to the VDA, 86% of small- and medium-sized enterprises in the automotive sector in Germany expect the tariffs to affect them.
The tariffs are likely to hit the domestic car industry hard, as the US is the most important sales market for German manufacturers, according to the latest official figures.
Some 13.1% of German car exports end up there, followed by the United Kingdom and France. Almost one in three Porsches and one in six BMWs were sold in North America in 2024.
The news from Washington also appeared to hit German shares, with the DAX index of leading German companies, and the MDax of medium-sized companies both losing over 1% in the first few minutes of trading.
