German car exports to the United States suffered a significant setback in April and May, following the imposition of steep import tariffs by U.S. President Donald Trump. According to the German Association of the Automotive Industry (VDA), exports dropped by 13% in April and a staggering 25% in May compared to the same months in the previous year. Only 64,300 vehicles were shipped to the U.S. over the two-month period, signaling a serious blow to German automakers in their most important foreign market.
The downturn follows Trump’s decision to impose 25% tariffs on European Union car imports in April, a move aimed at strengthening U.S. industry. By May, the tariffs were extended to include car parts, further compounding the pressure on European manufacturers. German automakers, including industry giants like Volkswagen, BMW, and Mercedes-Benz, are feeling the squeeze, with the VDA estimating the costs of the tariffs in April alone to be around half a billion euros.
VDA President Hildegard Mueller has called for swift diplomatic action, emphasizing the urgency of a political resolution between the EU and the U.S. “Every effort must be made to find a political agreement between the EU and the U.S. as quickly as possible – a free trade agreement should continue to be a long-term goal. However, speed plays a decisive role,” she said.
U.S. President Trump has set a firm deadline of July 9 for a deal to be reached, further intensifying pressure on EU leaders. German Chancellor Friedrich Merz has echoed these concerns, urging the EU to resolve the dispute quickly to protect key sectors including automotive, steel, and pharmaceuticals from long-term damage.
The ongoing tariff tensions have raised fears of a broader trade conflict that could impact transatlantic economic ties. For Germany, whose economy is heavily reliant on exports, particularly in the automotive sector, the stakes are high. The next few weeks will be critical in determining whether diplomacy can prevail and avert further economic damage.
