Trump's Tariff Threats Pose Risk to German Auto Industry

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Tariffs,Automotive Industry,Germany

President-elect Donald Trump's plan to impose tariffs on all goods entering the U.S. could significantly impact German carmakers, who are already facing challenges. Trump's statements about targeting Germany's auto industry and imposing tariffs on China, Canada, and Mexico raise concerns for European automakers, particularly Germany, which is a major exporter of vehicles to the U.S.

President-elect Donald Trump's pledge to impose a blanket tariff on all goods coming into the U.S. could wreak havoc for European carmakers.

PDD's Temu app tops U.S. iOS downloads for second year running amid greater scrutiny of China companies Germany is by far Europe's largest exporter of passenger cars to the U.S., accounting for 23 billion euros worth of exports last year, according to data compiled by statistics agency Eurostat and ING Research. That represents 15% of Germany's total exports to the U.S.

"It was rhetoric on the campaign trail but there is going to be some pressure on imports, whether that would be through a tariff, or some sort of other unilateral action," Michael Robinet, executive director of automotive consulting at S&P Global Mobility, told CNBC via video call. BMW, which declined to comment on the prospect of Trump's tariff threats, has a nationwide footprint of roughly 30 locations across 12 U.S. states, including the largest single BMW production facility in the world in Spartanburg, South Carolina.

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