Trump tariffs threaten $38.5 billion in EU car exports
The 25% tariffs on vehicles imported from Europe announced by Donald Trump have become a pressing issue for the automotive industry. Experts estimate that these regulations could lead to a decline in exports by up to 200,000 units annually.
Innovev, a French organization specializing in automotive market research, has evaluated the potential losses resulting from the aggressive tariff policy implemented by the Trump administration.
According to preliminary estimates, maintaining the 25% tariffs until the end of the year could lead to a drop in European exports from 900,000 to 700,000 units. This presents a significant challenge for the industry, as the USA is the largest export market for European manufacturers.
European car manufacturers could lose billions of dollars in sales, depending on how the tariffs unfold. Data from the lobbying group ACEA shows that the total value of automotive exports from the EU to the USA amounted to $38.5 billion last year.
There is a considerable risk that American customers will reject the higher prices resulting from the new tariff rates, affecting both demand and profits. Some brands, such as Audi, Jaguar, and Land Rover, have already responded to the new tariffs by suspending exports and waiting for further developments.
Meanwhile, Volkswagen, Mercedes, and BMW, the largest exporters to the USA, are gradually preparing to shift some production from Europe to the USA. They are considering using existing plants across the Atlantic or even constructing new facilities.
The best-selling export model is the Mercedes GLC SUV, with sales in the USA exceeding 60,000 units in 2024. The second is the Volvo XC90, followed by the XC60. Other top-selling models include the Mercedes C-Class, Audi Q3, Land Rover Defender, Porsche Macan, and BMW X1.
