President Donald Trump’s sweeping new tariffs on automotive imports might reshape world commerce routes — and push the UK into pole place as crucial 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 automotive imports to the US resulting from take impact on 2 April, German producers might 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 car imports to the US, the UK might become the most important export market for German car makers.”
The UK presently accounts for 11.3 per cent of German automotive exports — simply behind the US at 13.1 per cent. However with the US market doubtlessly turning into far much less worthwhile below the brand new commerce boundaries, the UK might turn out to be a most popular accomplice. “German-made cars would generally not be subject to UK tariffs, making the UK an attractive alternative,” 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 influence might additionally lengthen to the basic automotive sector. Gottschlich warned that the time period “finished vehicles” — as utilized in Trump’s tariff announcement — could also be broad sufficient to incorporate classic and collector vehicles. “US Borders and Customs may not be permitted to distinguish between classic and new cars — which currently attract a 2.5% duty. The 25% tariff could be added on top of existing duties, representing a significant cost increase for classic car businesses,” he mentioned.
Blick Rothenberg believes that deepening engagement with the UK market — for each new and basic vehicles — presents a sensible and doubtlessly worthwhile path ahead for German carmakers amid the unfolding US commerce warfare.
“Increased engagement with the UK market seems sensible for German businesses to compensate for a potentially bumpy US car market,” Gottschlich concluded.
