Trump threatens to do auto tariffs - consequences for German industry!
Trump threatens to do auto tariffs - consequences for German industry!
Fellbach, Deutschland - President Donald Trump has caused turmoil in the automotive industry with his new tariff policy. Since April 2025, increased tariffs of a whopping 25 percent have been on the import of cars and auto parts, a drastic increase in previously 2.5 percent. These measures could not only shake through the US market, but also the European manufacturers properly, such as the Stuttgarter Nachrichten report.
With the new tariffs, Trump relies on a strategy that aims to move foreign companies to move their production to the USA. The hope is to create jobs in the United States. However, there is a little ray of hope for manufacturers who end up in the United States: they can have some of the tariffs refunded. But the question remains whether these measures really fruit in the long term or whether the manufacturers do not have to throw the towel.
episodes for the automotive industry
The warnings from industry are alarming. According to economist Thomas Puls from the Institute of German Economy, the German auto industry is particularly affected by the new tariffs. The T-Online reports that 86 % of medium-sized companies in Germany are reported Expect, with a third of them feel them immediately. Apart from that, many American manufacturers, including greats such as General Motors, have close connections to production facilities in Mexico, which should further complicate the effects.
experts agree that the pricing for vehicles in the USA could increase through the tariffs. The sales are particularly at risk of pick-up trucks and larger SUVs because they represent 80 percent of the new registrations. When asked how these developments will affect sales, the uncertainty is great. Shares of American and Asian car manufacturers have already come under pressure; The expected increasing costs and sales declines make investors nervous.
Global production strategies rethink
For many German car manufacturers, the only solution could be to move production to the USA. However, this strategy requires high investments and is associated with major challenges. The Deloitte an adaptation of the global production strategies is necessary in order to be necessary in turbulent times, in order to be necessary to remain competitive. The German automotive industry is not only required by the new tariffs, it also has to compete against the increasing competition from China.
The forecasts about possible job losses in Germany are still vague, but, depending on the development, could be considerable. It ultimately depends on whether the German automotive groups actually decide to shift their production facilities on how stable the current customs policy remains and which strategies the companies will pursue in the coming months.
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| Ort | Fellbach, Deutschland |
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