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Exports

Germany's Car Exports to US Plummet Following Tariffs

Strategic Insights

— 2 min read

Germany's automotive industry association VDA warned that tariffs imposed by the United States on European Union (EU) vehicle imports would significantly impact EU car exports to the US. Despite a modest overall decline of 1.9 percent in the first five months of 2025, vehicle shipments to the US plunged by 23.5 percent in April and May after the 25 percent tariff took effect. Germany's three largest carmakers - Volkswagen, Mercedes-Benz, and BMW - accounted for around 73 percent of EU car exports to the US last year.

Key Takeaways:

  • Germany's car exports to the US fell sharply in April and May, despite only a modest overall decline of 1.9 percent in the first five months of 2025.
  • Vehicle shipments to the US rose by 14.7 percent year-on-year in the first quarter, but dropped by 23.5 percent in April and May after the 25 percent tariff took effect.
  • The new tariffs have hit German carmakers hard, with the largest three exporters - Volkswagen, Mercedes-Benz, and BMW - responsible for around 73 percent of EU car exports to the US last year.
  • Porsche, the luxury sports carmaker, is considering further cost-cutting measures due to weakening sales and rising expenses caused by the tariff hikes.
  • The company estimates it has incurred approximately 300 million euros in extra costs under price protection measures to offset the higher US duties in April and May.
  • Germany's automotive industry association VDA warned that the additional auto tariffs would significantly impact EU car exports to the US and would ultimately hamper economic growth and prosperity on both sides of the Atlantic.
  • The US has been Germany's largest trading partner in the automotive sector, with Germany exporting vehicles worth 36.8 billion euros (42.8 billion US dollars) to the US in 2024.
  • The US remains the top destination for EU automotive products, accounting for 20 percent of the EU's total domestic value added in the sector.
  • Germany's car exports to the US are expected to continue to struggle in the coming months due to the ongoing impact of the tariff hikes.

Statistics:

  • 1.9 percent: the overall decline in Germany's car exports to the US in the first five months of 2025.
  • 23.5 percent: the drop in vehicle shipments to the US in April and May after the 25 percent tariff took effect.
  • 14.7 percent: the year-on-year increase in vehicle shipments to the US in the first quarter.
  • 73 percent: the percentage of EU car exports to the US accounted for by Volkswagen, Mercedes-Benz, and BMW in 2024.
  • 300 million euros: the estimated extra costs incurred by Porsche under price protection measures to offset the higher US duties in April and May.
  • 36.8 billion euros: the value of vehicles exported by Germany to the US in 2024.
  • 20 percent: the percentage of the EU's total domestic value added in the automotive sector accounted for by the US.

Sources:

  • Xinhua via COMTEX
  • Destatis
  • VDA
  • Porsche CEO Oliver Blume
  • Eurostat
  • German press agency dpa
  • German media reports

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