Trump’s car tariffs could make UK top export market for German auto industry, says Blick Rothenberg
President Donald Trump’s sweeping new tariffs on automobile imports might reshape international commerce routes — and push the UK into pole place as an important export marketplace for Germany’s automotive trade.
That’s the opinion of main audit, tax and enterprise advisory agency Blick Rothenberg.
With a 25 per cent tariff on all German automobile imports to the USA as a consequence of take impact on 2 April, German producers could look to strengthen ties with the UK, which already ranks because the second-largest purchaser of German autos worldwide.
Viktor Gottschlich, Senior Supervisor and German Desk Deputy at Blick Rothenberg, mentioned: “With the looming 25% tariffs on German automobile imports to the US, the UK would possibly change into an important export marketplace for German automobile makers.”
The UK presently accounts for 11.3 per cent of German automobile exports — simply behind the US at 13.1 per cent. However with the US market probably changing into far much less worthwhile underneath the brand new commerce boundaries, the UK could change into a most popular accomplice. “German-made vehicles would typically not be topic to UK tariffs, making the UK a horny different,” Gottschlich famous.
German producers have already got a robust footprint within the UK, proudly owning iconic British manufacturers like Bentley and Mini. Increasing export operations and strengthening provide chains to and from the UK might assist German automakers cushion the blow from a much less viable American market.
The affect might additionally lengthen to the basic automobile sector. Gottschlich warned that the time period “completed autos” — as utilized in Trump’s tariff announcement — could also be broad sufficient to incorporate classic and collector vehicles. “US Borders and Customs will not be permitted to tell apart between basic and new vehicles — which presently entice a 2.5% responsibility. The 25% tariff might be added on high of present duties, representing a big value improve for traditional automobile companies,” he mentioned.
Blick Rothenberg believes that deepening engagement with the UK market — for each new and basic vehicles — presents a sensible and probably worthwhile path ahead for German carmakers amid the unfolding US commerce struggle.
“Elevated engagement with the UK market appears wise for German companies to compensate for a probably bumpy US automobile market,” Gottschlich concluded.
