Porsche and Mercedes-Benz will be the most affected by President Donald Trump’s latest commercial attack, facing a potential impact of $ 3.7 billion ($ 212 billion) with new US tariffs on imported cars.
Additional 25%tariffs, which will take effect on April 3, can eliminate about a quarter of the Porsche and Mercedes projected operational profits, according to Bloomberg Intelligence. To compensate for impact, manufacturers may need to increase prices or transfer more production to the US.
These rates threaten to destabilize the dependence on the European export auto industry for the lucrative US market. German automakers are the most at risk as they send more vehicles to the US than to any other country, including many of their most margin combustion models, such as the Porsche 911 sports sports and the Mercedes S-Class luxury sedan.
Although other high -volume European automakers are less affected due to the lowest US presence, the country is the largest market for the high -end sports car manufacturer, which produces all its vehicles in Italy. The company announced on Thursday that it plans to increase the prices of some of its cars by up to 10% in the US, although it will absorb the cost of the fare in other models.
Porsche and Mercedes shares fell up to 5.7% in Frankfurt, with BMW AG retreating 4.9%. Volkswagen AG, which also has Audi and Lamborghini, fell up to 4.3%, while Aston Martin Lagonda Global Holdings PLC plummeted 8.9% in London.
Ferrari shares rose 1.5% in Milan after confirming their financial goals for the year, despite the tariff impact.
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Trade War gains scale
Most German automakers operate factories in the US where they produce vehicles for both local and export consumers. With the European Union considering a response, any climb of trade war can further undermine an industry that already faces increasing costs and demand weak.
VDA, the German automotive industry association, called Trump’s movement “a fatal signal for free and rules -based trade,” and asked Brussels to negotiate an agreement with Washington. In addition to the country’s leading automakers, tariffs also threaten suppliers of pieces such as Robert Bosch Gmbh and Continental AG.
The MSCI ACWI Automobiles index lost $ 364 billion this year until Wednesday’s closure. In Europe, automakers have lost about € 43 billion in market value since the last peak in February, including Thursday’s fall, as Trump’s tariff impulse optimism has been optimistic about increasing Germany spending and European economic recovery.
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Still, many bad news may already be priced. The automotive sector remains the cheapest in Europe, negotiating at just 7.3 times the projected profit, with a 50% discount on the broader European stock market.
Porsche: the most exposed
Porsche, which faces sales in China, can be the most exposed. The luxury car manufacturer has grown constantly in the last 15 years in the US, which has recently surpassed China as its main market. However, USche dealers in the US depend entirely on imports, as the company does not have a factory in the country.
With a market value of about € 44 billion, Porsche is now worth less than half of what was worth in May 2023, when its actions reached peak after one of the largest IPOS in Europe in recent years. This sharp drop increases the pressure on CEO Oliver Blume, which runs both Porsche and Volkswagen.
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While disappointing demand for electric vehicles affects Porsche in China, where deliveries fell 28% last year, this is less problematic in the US.
The adoption of US electric cars has been slower, and US consumers have bought more porsches every year since 2009, except 2020, when the Covid-19 pandemic began.
Other manufacturers
Stellantis NV has an established production network in the US, making Jeep, Dodge, Chrysler and Ram models, while Renault SA is the least impacted as its sales are mostly in Europe. BMW said this month it expects commercial conflicts between US, Europe and China to cost about € 1 billion this year – an estimate that did not consider Trump’s new tariffs.
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Although automotive industry executives have long been lobbying against tariffs – including those imposed by the EU on electric vehicles manufactured in China – most adopt a waiting stance while following the negotiations between Brussels and Washington. Even a short period with tariffs will be harmful to automakers.
“Tariffs put a heavy burden on companies and highly interconnected global supply chains in industry,” said Hildegard Müller, president of VDA. The measure has “negative consequences for consumers, especially in North America.”
© 2025 Bloomberg L.P.
