German car exports to U.S. slide in April, May as tariffs hit

by Reuters Jul 03, 2025

German car exports to the United States fell sharply in April and May as import tariffs imposed by President Donald Trump hit German automakers' sales in their most important foreign market, the VDA industry association said on Thursday.

Auto exports to the U.S. fell by 13% in April and 25% in May from the same months the previous year, VDA said. Some 64,300 vehicles were shipped to the U.S. over both months, it added.

In a bid to strengthen U.S. industry, Trump imposed 25% tariffs on car imports from the EU in April. Since May, it has also applied to car parts.

Drone view shows Volkswagen Group cars bound for cargo ship export to the United States at the seaport of Emden near the estuary, where the River Ems flows into the North Sea, in Emden, Germany, April 2, 2025. REUTERS/Erol Dogrudogan

"Every effort must be made to find a political agreement between the EU and the U.S. as quickly as possible - a free trade agreement should continue to be a long-term goal. However, speed plays a decisive role," VDA's head Hildegard Mueller said.

Trump has set a deadline of July 9 for a deal with the EU.

German Chancellor Friedrich Merz has urged the EU to settle a tariff dispute with the United States quickly to protect core industries, such as cars, steel and pharmaceuticals.

German car manufacturers are likely to have incurred costs of around half a billion euros in April due to the tariffs, Mueller estimated in June.