- German officials reacted to President Donald Trump’s announcement of 25% tariffs on foreign car imports and auto parts. They said the tariffs would hurt free trade and economic prosperity.
- Germany has three big names that conduct business with the U.S.: Volkswagen, BMW and Mercedes-Benz.
- One high-ranking German official called on the European Union to respond decisively and vowed not to back down to the U.S.
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Germany’s economy minister, Robert Habeck, reacted to President Donald Trump’s 25% tariffs on car imports and auto parts. He stated that the new tariffs are bad news for German car manufacturers and the economy.
Habeck urged the European Union to respond decisively to these latest tariffs, stating that they will ultimately harm the U.S., the EU and global trade overall.
What German car brands will likely be affected by the tariffs?
In 2023, CNBC reported Germany was the largest exporter of cars to the U.S. Brands exported to the U.S. include Volkswagen, Mercedes-Benz and BMW.
In fact, when it comes to trade and the automotive industry, BMW said its plant in Spartanburg, South Carolina, is its biggest plant worldwide. The company said it has been an important production location for more than 30 years.
How much business do they conduct in the US?
BMW said the South Carolina plant exported 225,000 BMWs in 2024, valued at more than $10 billion. A spokesperson for BMW said a trade conflict would not have any benefits.
The president of the German Association of the Automotive Industry, Hildegard Muller, called the 25% tariffs a “fatal signal for free, rules-based trade.”
Muller said the risk is high on all sides, with negative effects likely on the global economy, prosperity, jobs and prices.
