The Trump administration’s rising tariffs caused German auto exports to the U.S. to decline during April and May which negatively affected one of Europe’s leading industrial sectors. The VDA auto industry group reported that vehicle shipments decreased by 13% in April followed by a 25% decline in May when compared to previous year totals which reached 64,300 units.
The U.S. government implemented 25% duties on EU-made cars during April before expanding the tariffs to include parts in May as part of President Donald Trump’s domestic manufacturing initiative. The decision received immediate disapproval from German business leaders together with political officials.
The VDA President Hildegard Mueller emphasized that all parties should work toward a political settlement. The situation demands immediate action because time remains our only defense against additional harm.
Chancellor Friedrich Merz demands the EU to solve the trade dispute rapidly because it threatens essential industrial sectors including autos and steel and pharmaceuticals. The tariffs imposed by the U.S. government resulted in €500 million additional costs for German car manufacturers during April according to Mueller.
The July 9 deadline set by Trump for completing an EU trade agreement creates rising pressure on negotiators. The German automotive industry faces increasing danger because it depends heavily on American market sales.
