Trump's Tariff Threat Looms Over German Auto Industry

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Donald Trump's proposed tariffs on imported goods could severely impact the German auto industry, which is already facing challenges.

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. For Germany, the prospect of U.S. tariffs on European autos comes at a time when it's top original equipment manufacturers (OEMs) are already reeling. Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, said Germany's auto sector appears to be significantly exposed to Trump's tariff threats.

Republican Presidential candidate, former U.S. President Donald Trump speaks to attendees during a campaign rally at the Johnny Mercer Theatre on September 24, 2024 in Savannah, Georgia. Speaking on the campaign trail in late September, Trump announced his desire to turn Germany's auto giants into American car firms in Savannah, Georgia. He added that the word tariff was 'one of the most beautiful words I've ever heard' and 'music to my ears.' plans to introduce new tariffs on China, Canada and Mexico in one of his first acts in office. The measures include an additional 10% tariff on all Chinese products coming into the U.S. and a 25% tariff on all goods coming from Canada and Mexico. Europe wasn't mentioned in Trump's first tariff announcement but EU policymakers will likely be worried that it's just a matter of time before the president-elect turns his attention to the 27-nation bloc's auto sector. Germany is by far Europe's largest exporter of passenger cars to the U.S., accounting for 23 billion euros ($24.2 billion) worth of exports last year, according to data compiled by statistics agency Eurostat and ING Research

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