"Trade Tensions Escalate: Trump's Car Tariff Threat Hits European Automakers Hard In a move that could have far-reaching consequences for the European auto industry, President Trump's threat to impose tariffs on European cars has sent shockwaves through the market. Analysts warn that the potential increase in tariffs could cost automakers a staggering €3.5 billion in 2026 and a whopping €5.7 billion in 2027, with luxury brands like Porsche and Mercedes-Benz among the most exposed. The tariffs, which could be triggered by a long-standing dispute over aircraft subsidies, would not only hurt the bottom line of European automakers but also impact jobs and the overall competitiveness of the industry. As trade tensions between the US and Europe continue to escalate, the future of the auto sector hangs in the balance."
President Trump's threat to increase European car tariffs could cost automakers €3.5 billion in 2026 and €5.7 billion in 2027, with Porsche and Mercedes among the most exposed, analysts warn.
