This week, US President Donald Trump announced a 25% tariff on imports of all cars not made in the US. The move is part of a broader strategy aimed at boosting domestic industry and reducing the US trade deficit. The duties are due to come into force on 3 April and are expected to bring an additional USD 100 billion to the federal budget.

The EU has strongly criticised the decision and called for negotiations with the US to start quickly. The President of the European Commission, Ursula von der Leyen, said the tariffs were harmful to businesses and consumers on both sides of the Atlantic.

European car manufacturers have expressed concern about the negative impact of these measures on their exports to the US. Volkswagen has warned that the new tariffs could have a detrimental economic impact on US consumers and the international automotive industry. Italian-American carmaker Stellantis said it was prepared to adapt to any tariffs. German Economy Minister Robert Habeck and French Finance Minister Éric Lombard criticised the US tariffs and stressed the need for dialogue to find a solution to prevent an escalation of trade disputes.

Analyses show that some European car companies are more dependent on the US market than others. For example, Porsche and Stellantis derive around a quarter of their total sales from the US, while Volvo, Mercedes and BMW have a share of around 15% of sales from the US. There are also differences in the location of production of cars destined for the US market. While Porsche and Volvo import almost 100% of their cars from Europe, Volkswagen and Stellantis have part of their production located in the US or in nearby countries. In view of the new tariffs, some companies might decide to shift part of their production to the US to avoid additional costs.

The introduction of these duties may lead to a rethinking of the production strategy of European carmakers, including a possible shift of production to the US or a search for alternative markets. It is also expected to increase prices for US consumers, which could lead to a reduction in demand for European cars and consequently affect production and employment in the European car industry.