European Car Manufacturers Estimate €80 Billion Cost Due to Tariff War

With up to €67 billion worth of EU vehicle exports potentially affected and a total tariff cost estimated at €80 billion, including cars, parts, and reciprocal tariffs combined, the European Automobile Manufacturers Association (ACEA) advocates for urgent transatlantic cooperation to prevent further tariff escalation and long-term damage to both the US and European economies.

The organisation has called on the European Commission to seek a constructive and negotiated solution with the United States and to avoid countermeasures that could harm European competitiveness.

In a high-level meeting with the President of the European Commission, Ursula von der Leyen, industry leaders, including executives from BMW, Daimler Trucks, IVECO, Mercedes-Benz, Scania, Stellantis, and Volkswagen, discussed the far-reaching impact of recent US tariffs on European exports of cars, steel, and aluminium.

According to Sigrid de Vries, ACEA's Director General, "the ongoing volatility of global markets only increases trade barriers and costs for businesses. Tariffs merely raise prices for consumers in Europe, the United States, and the rest of the world."

Therefore, it is considered essential that European and US leaders urgently find a solution to the ongoing trade conflict. Moreover, "it is imperative that European institutions actively implement the Automotive Action Plan to enhance competitiveness, reduce costs, alleviate regulatory burdens, and strengthen the European manufacturing industry."

The United States remains the second-largest market for new EU vehicle exports, after the United Kingdom. In terms of value, the US accounted for 22% of the EU's export market in 2024. European car manufacturers and other international manufacturers also have a significant manufacturing presence there, generating employment and wealth for hundreds of thousands of Americans.

"We are deeply concerned about the escalation of global trade tensions. European car manufacturers are committed to maintaining an active presence in the US, significantly contributing to the US economy, generating around half a million jobs in the automotive sector, exporting over 750,000 vehicles to the US in 2024, and actively investing in local communities to boost economic prosperity," stated Sigrid de Vries.