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Trade Trends News
08-07-2025
Germany's car exports to the United States dropped sharply in April and May due to import tariffs imposed by U.S. President Donald Trump, which hit sales in one of the German auto industry’s most important foreign markets, the German Association of the Automotive Industry (VDA) said on Thursday.
According to the VDA, German car exports to the U.S. fell by 13% year-on-year in April and by 25% in May. The association added that approximately 64,300 vehicles were exported to the U.S. during those two months combined.
In an effort to bolster U.S. industrial strength, Trump imposed a 25% tariff on cars imported from the European Union in April. Starting in May, this tariff was extended to include auto parts as well.
Hildegard Müller, president of the VDA, stated: “Every effort must be made to quickly reach a political agreement between the EU and the United States — a free trade agreement should remain a long-term goal. However, speed is of the essence.”
Trump has set July 9 as the deadline for reaching an agreement with the EU.
German Chancellor Friedrich Merz urged the EU to resolve the trade dispute with the U.S. as quickly as possible in order to protect key industries such as automotive, steel, and pharmaceuticals.
In June, Müller estimated that German carmakers could face around €500 million in costs from the tariffs imposed in April.
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