Trump announces customs exceptions: shock for the German car industry!

Trump announces customs exceptions: shock for the German car industry!

Vienna, Österreich - President Donald Trump recently announced temporary exceptions to tariffs. This announcement meets the needs of the carmakers to get more time to switch their supply chains to part production within the USA. Trump is currently examining how he can help some manufacturers without naming concrete measures or time frames. The tariffs on imported vehicles are currently 25 percent, while planned tariffs are to follow components in early May. Some vehicles from Mexico and Canada are already excluded as part of a North American trade agreement. This development has already led to an increase in General Motors and Ford's shares, from which companies were apparently able to benefit.

competitive pressure and market challenges

The EU is currently on 10 percent inches on auto imports from the United States, while the United States only demand 2.5 percent inches for imports from the EU. This could change due to the increased tariffs to 25 percent for all cars imported into the USA. The aim of this measure is to protect the domestic auto industry from foreign competition. US carmakers have increasingly lost competitiveness in international competition. This is particularly impressive: General Motors has given up the European business, while Ford has difficulties in Europe.

Commercial Committee Chairman Bernd Lange (SPD) sees no basis for negotiations with the USA due to the current situation. Analysts criticize the technical and qualitative deficits of the US manufacturers as well as structural problems, such as a lack of quality awareness and inflexible production facilities. Stephanie Brinley from S&P Global Mobility emphasizes that the US market is saturated and that the transition to electromobility is slow. E-cars have often emerged as loss lovers for the car manufacturers.

follow for the German automotive industry

The customs announcements from the USA have led to a shock for the German automotive industry. Many German car manufacturers now have to weigh up how to react to the rising tariffs in order to remain competitive. A possible strategy could be the relocation of production to the United States, but this requires high investments and efforts. In turbulent times, it is crucial to adapt the global production strategies to meet the customs -related challenges.

High product quality remains essential for German premium manufacturers because competition from new providers from China increases. Analysts also warn that the announcements of tariffs could result in job losses in Germany, especially in vehicle production. The forecasts about the size of the job removal are currently difficult to create, but depend on decisive factors, such as the faith of automotive manufacturers in the durability of customs developments and the scope of the possible shift in production to the USA.

The current measures and developments in the automotive industry show how complex and challenging the situation for manufacturers on both sides of the Atlantic has become.