US tariffs: German auto industry faces 29% loss

Shafaq News/ German car exports to the United States could decline by up to 29% if new US tariffs on foreign vehicles are implemented, consulting firm Deloitte reported on Friday.

The projections are based on data from the Global Trade Analysis Project (GTAP), which tracks global trade flows.

The firm estimated potential losses of €8.2 billion for German automakers and parts suppliers under the proposed tariff plan put forward by US President Donald Trump.

“German manufacturers sold 1.3 million vehicles in the US last year,” said Harald Proff, head of Deloitte’s global automotive practice. “With American plants already running at 70% capacity, shifting production to the US is not a viable short-term solution.”

Proff also noted that compensating for the projected losses would require major investment in US-based manufacturing—a move complicated by ongoing trade tensions and economic uncertainty.

The Trump administration has imposed a range of tariffs since he took office, targeting Chinese goods as well as steel and aluminum imports. In February, Trump approved 25% tariffs on Mexican and Canadian imports, though he postponed implementation by a month after both countries agreed to new border security measures.