BOCHUM (dpa-AFX) - The 25 percent tariffs on new vehicles from the EU announced by US President Donald Trump could impose an additional annual burden of approximately 2.5 billion euros on German automotive production. This is according to calculations by the Center Automotive Research (CAR) in Bochum. Furthermore, additional costs are expected for US exports from German carmakers produced in other EU countries.
While Trump's measures target the European Union, CAR Director Ferdinand Dudenhoeffer sees Germany clearly in the crosshairs. 'Since exports from foreign carmakers to the USA are negligible, Trump's new tariff threats can also be interpreted as the start of an economic war against Germany,' he emphasized.
However, the special levies resulting from the Trump tariffs would not be borne entirely by the automakers. 'Attempts will be made to 'pass on' part of the tariffs to buyers in the USA through price increases,' said Dudenhoeffer. German carmakers possess strong brands, and buyers would not immediately defect in the event of a price hike.
Who is most affected?
The increased tariffs are likely to affect automakers differently, the expert noted. Mercedes and BMW have large US production facilities and thus a certain degree of 'tariff protection.' SUVs are built in these US plants and account for the bulk of sales in the USA.
The situation is different for Porsche and Audi, for example. 'This is likely to accelerate plans for both to build car plants in the USA,' said Dudenhoeffer. Overall, it must be assumed that the Trump tariffs will provide additional impetus for the relocation of the automotive industry out of Germany./hgo/DP/zb
