Trump's auto tariffs to 25%: dangers for German industry!

Trump's auto tariffs to 25%: dangers for German industry!

The automotive industry is facing a harsh time, and the whole theater has its origin in Washington. US President Donald Trump has imposed a whopping 25 percent on imported cars and auto parts, a step that has been in force since the beginning of April. This surcharge has been in effect for auto parts since the beginning of May. Companies that finalize vehicles in the United States can currently hope for relief from tariffs - there is even the possibility of receiving part of the tariffs. But not everyone shows a good knack in dealing with this development.

How the Jaumann are reported in industry. Warnings of drastic negative consequences and exorbitant price increases become loud, while Trump continues to rely on tariffs and high punitive levies in his trade policy. In the past few weeks he has even threatened with further increases. "Maybe I will increase this tariff in the near future," said Trump recently. He often used such threats as a means of pressure in negotiations.

industry protection or trade war?

The effects should not be underestimated. Unilex, international companies and the entire automotive industry are preparing for an uncertain future. According to Kleine Zeitung awaits a large part of the German automotive industry negative consequences through the tariff. There is also a new offset regulation that German Chancellor Friedrich Merz proposed after a visit to Washington. This regulation could serve to offset the import and export numbers of cars and thus to avoid punitive tariffs.

With around 400,000 exported cars to the USA annually, the German automotive industry is severely affected. The large brands such as BMW, Volkswagen and Mercedes-Benz are in close contact with the US Ministry of Trade to negotiate possible customs reservations. According to insiders, billion dollar investments are also considered to the United States in order to receive concessions in the discussion about tariffs.

economic interdependencies

The effects of the tariffs are particularly noticeable on the global supply chains of the automotive industry. The vda indicates that a large part of the German automotive industry is active in the USA. Around 138,000 employees are employed there for German manufacturers and suppliers. In 2024, these produced more than 844,000 vehicles in the United States, with about half being exported. A trading volume of 44.7 billion euros between Germany and the USA in the automotive sector shows how important the transatlantic relationships are.

The entire export value of the German automotive industry was 279.8 billion euros in 2024, with the United States out of 13.1 percent. These economic interdependencies make it clear that customs policy triggers not only national but also international reactions.

The coming months will show how the situation will develop. One thing seems certain that the topic of high -pressure tariffs will employ the automotive industry and its customers for a long time.