US President Donald Trump is considering imposing tariffs on European cars and auto parts, potentially impacting the European automotive industry, particularly German manufacturers.
The EU is prepared to seek pragmatic solutions in the trade dispute but will not stand idly by if Trump imposes tariffs.
The potential impact on German automakers is significant, with Volkswagen, Mercedes-Benz, and BMW heavily reliant on production facilities in Mexico and Canada, which export heavily to the US market.
Volkswagen, in particular, could be severely affected, as almost 44% of its US sales come from Mexico.
The German auto industry association (VDA) warns that German brands could lose market share due to higher prices, especially in the mid-price segment.
Porsche and Audi are considering expanding production in the US to mitigate the impact of potential tariffs.