Germany’s automotive industry group VDA says that US President Donald Trump’s tariffs have cost German automakers around €500 million ($575m) in April alone.
Currently, the US is implementing a 25% levy on imports of autos and auto parts from several markets, including the European Union. In an interview with the Funke Media Group, VDA’s president Hildegard Müller said that these charges “are particularly significant in the midst of a once-in-a-century transformation.”
A spokesperson for the VDA told Kallanish the association cannot share whether companies will take the hit or pass the extra costs onto customers “for antitrust reasons.”
“One thing is certain: the US's protectionist tariff policy will only produce losers. Consumers in the US are particularly affected,” the spokesperson adds. “The tariffs also have a significant negative impact on exports from the EU to the US.”
German group Audi is considering setting up a new factory in the US, Spiegel reports. In 2024, German exports of passenger cars to the US rose by 12% year-over-year to 448,075 units, according to the VDA, while total exports were 2% higher at 3.1m vehicles.
According to AlixPartners, tariff costs will drop by 40% from current negotiating anchor levels to $30 billion in 2026. Most of them will be passed to customers, which analysts say will impact sales in the US.
Source:Kallanish
