Tariff turmoil puts the brakes on German carmakers’ growth ambitions

As the European automotive market contracts and competition rises in China, Volkswagen has highlighted potential growth in the US, but Donald Trump’s tariffs, notably a 25% import levy, have hindered this optimism. Analysts predict a significant reduction in US car sales, with up to 1.2 million fewer vehicles expected next year, impacting not only VW but also other German automakers, who may face costs between $2 billion and $4 billion. Executives from major carmakers, including VW and Mercedes-Benz, have sought to address these trade tensions directly with the Trump administration, emphasizing their substantial US manufacturing presence.

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