He had promised it during the election campaign, and it’s now a done deal. On 26 March 2025, US president Donald Trump announced a hike of 25% in customs duties for automobiles. Imported cars will now be taxed at 27.5% of their value, compared with 2.5% at present. This decision has far-reaching consequences for the European Union, since the United States is the leading importer of European cars. According to the Observatory of Economic Complexity, more than 10% of cars manufactured in Europe were exported to the United States in 2023.
The reaction of European Commission president Ursula von der Leyen wasn’t long in coming. In a press statement published on 26 March 2025, she said: “I deeply regret the US decision to impose tariffs on European automotive exports. The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.”
“As I have said before,” she continued, “tariffs are taxes--bad for businesses, worse for consumers equally in the US and the European Union. We will now assess this announcement, together with other measures the US is envisaging in the next days. The EU will continue to seek negotiated solutions, while safeguarding its economic interests. As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.”
“Only losers”
These tariffs will apply to “all cars that are not made in the United States,” Trump said on Wednesday, and they will come into force on 2 April. “We will start collecting them on 3 April.” After steel and aluminium, and pending announcements on timber or copper, the new US president is therefore continuing his protectionist strategy.
On the French side, the Plateforme Automobile (PFA), which brings together the major manufacturers and equipment suppliers operating in France, told AFP on 27 March 2025 that “there will only be losers in the trade war that is opening up” with the United States.
“The impact could be particularly significant for certain German car brands such as Porsche, BMW, Volkswagen and Mercedes Benz, which make between 12% and 25% of their global sales in the United States,” notes L’Express.
This article in French.