Europe's auto exports hit hard by Trump's tariffs
The 25% tariffs on vehicles imported from Europe, announced by Donald Trump, have become a pressing issue for the automotive industry. Experts estimate that the new regulations could result in a decrease in exports by up to 200,000 units annually.
Innovev, a French organization specializing in automotive market research, has estimated potential losses resulting from the aggressive tariff policy implemented by the Trump administration.
According to preliminary estimates, maintaining the 25% tariffs until the end of the year will result in a drop in European exports from 900,000 to 700,000 units. This is a major problem for the industry, as the U.S. is the largest export market for European manufacturers.
European car manufacturers could lose billions of dollars in sales depending on how the tariffs unfold. Data from the lobbying group ACEA shows that the total value of automotive exports from the EU to the U.S. amounted to approximately 54.7 billion CAD last year.
There is a significant risk that American customers will reject higher prices resulting from the new tariff rates, impacting demand and profits. Some brands, such as Audi, Jaguar, and Land Rover, have already responded to the new tariffs by halting exports and awaiting further developments.
Meanwhile, Volkswagen, Mercedes, and BMW, the largest exporters to the U.S., are gradually preparing to shift some production from Europe to the U.S. They do not rule out using existing plants across the ocean, or even building new facilities.
The best-selling export model is the Mercedes GLC SUV, whose sales in the U.S. exceeded 60,000 units in 2024. The second is the Volvo XC90, followed by the XC60. Other top-selling models include the Mercedes C-Class, Audi Q3, Land Rover Defender, Porsche Macan, and BMW X1.
