Losses in the European car industry have exceeded €8bn following the US imposition of higher tariffs on car imports from the EU.
It is noted that, based on results for last year and the first three months of this year, Volkswagen Group suffered the greatest losses, estimating them at €3.6bn. BMW lost around €2.1bn, Mercedes-Benz €1.3bn, and Stellantis’s costs amounted to approximately €1.2bn.
Analysts believe that in the event of a further increase in tariffs to 25%, German carmakers Volkswagen, BMW and Mercedes-Benz could lose a further €2.6 billion as early as 2026. The European car industry is preparing for a possible new round of trade tensions between Washington and Brussels.
The US raised tariffs on European cars from 2.5% to 27.5% in April 2025. Following the conclusion of a trade agreement between the US and the EU in August of that year, the rate was reduced to 15%. However, on 1 May 2026, US President Donald Trump announced an increase in tariffs on imported passenger cars and lorries from the EU to 25%, explaining the decision by citing the European partners’ failure to properly fulfil their obligations.
German Chancellor Friedrich Merz stated that the tariff hike would deal a serious blow to the European economy and the automotive industry. He also noted that the US is ready for a new trade agreement with the EU, but European countries have not yet been able to reach a unified position. Merz hopes to discuss this issue with Trump in the summer of 2026 at the G7 and NATO summits.
