Trump to Hike EU Auto Tariffs to 25% Next Week, Totaling 27.5% with Existing Duty
US tariffs on EU-imported cars and trucks will rise to 25% next week (total 27.5% with 2.5% duty), up from 15%, likely raising US prices for models like Porsche (all 76,…
US President Donald Trump announced on Friday that tariffs on cars and trucks imported from the European Union will increase to 25% next week, up from the prior 15% rate. Combined with the standard 2.5% duty, this brings the total effective tariff to 27.5%. This escalation mirrors previous tariff hikes, which prompted European automakers to either raise prices in the US market or suspend shipments entirely.
Impact on Key Automakers
Porsche faces significant exposure, having imported all 76,000 vehicles for its 2024 US sales directly from Europe. Audi sources its US sales from both Europe and Mexico, leaving it partially vulnerable.
In comparison, BMW produced 400,000 vehicles at its Spartanburg, South Carolina plant in 2024. Mercedes-Benz manufactured 170,000 vehicles at its Tuscaloosa, Alabama facility during the same period, exporting two-thirds of output. Vehicles assembled at these US plants qualify for Trump's no-tariff exemption, shielding them from the new duties and limiting price pressures relative to fully imported models.