US President Donald Trump’s new tariffs imposing a 25% tariff on imports from Canada and Mexico have entered into force. Trump’s tax decision is a blow for European automotive giants. It is said that automotive giants could suffer huge financial losses. Here are the details
Volkswagen and Stellantis to take the biggest hit from Trump’s new tariffs
According to Bloomberg Intelligence’s analysis, the tariffs could cause European automakers to lose a total of $5.88 billion in operating profits. Among the most affected companies are the following:
- Stellantis: $3.44 billion loss
- Volkswagen: $1.77 billion loss
- BMW: $552 million loss
- Mercedes: 123 million dollars lost
It is said that under the new tariffs, the prices of cars not made in the US could increase by up to 10 thousand dollars, but at the moment manufacturers are looking for alternative solutions to avoid passing this cost on to consumers. But is it really possible to shift production to the US?
According to Bloomberg analysts, European automotive companies may consider moving their production to the US. However, this process would take time and incur high costs. There is also talk that Trump may impose additional taxes targeting the European automobile sector.
For now, we will wait and see how the European automotive giants will respond to the new tariffs. What do you think? Can brands like Volkswagen and Stellantis overcome this problem by producing in the US? How will the new taxes affect car prices for American consumers? Let us know in the comments section below…
