Volkswagen, BMW, Mercedes-Benz and other German cars are forced to raise prices but are still losing money

On the 23rd, U.S. President Trump threatened to impose a 50% tariff on goods imported from the European Union, significantly higher than the 20% so-called "reciprocal tariff" that the U.S. had previously announced to postpone for Europe. As Germany's most representative pillar industry, the automotive industry is particularly affected by U.S. tariff policies. In 2024, 13.1% of new cars exported from Germany will be sold to the U.S. Car manufacturers such as Porsche, BMW, Volkswagen, and Mercedes-Benz, which have production lines concentrated in Europe, have no choice but to raise prices to cope with the high tariffs from the U.S., and even so, they may still face losses. The U.S. market is the largest export market for French cognac, accounting for over 50% of its global sales. Statistics show that if a 50% tariff is imposed, the French cognac industry will lose more than 2 billion euros annually, and some wineries may permanently exit the U.S. market