Germany’s top three automakers have collectively lost an estimated €10 billion in second-quarter profits in 2025, following new tariffs imposed by U.S. President Donald Trump on foreign car imports. The move has further strained an industry already grappling with declining sales and growing competition from Chinese manufacturers.

The automotive sector emerged as one of the hardest hit in Trump’s trade offensive, after the White House enforced tariffs of up to 25% on non-American vehicles entering the U.S. market. The German auto industry, heavily reliant on exports to the United States, is now facing mounting financial pressure and reevaluating its global strategy amid ongoing trade tensions.