Losses of European automakers due to Trump’s tariffs calculated. Are we expecting price increases?

In April 2025, the U.S. raised tariffs on European cars from 2.5% to 27.5%, but in August, the rate was reduced to 15%. In May 2026, the American leader threatened to increase import tariffs on cars to 25%. European automakers lost over €8 billion in a year due to the tariffs imposed by Donald Trump, reports the Financial Times (FT). This estimate is based on public statements from the leaders of Volkswagen, BMW, Mercedes-Benz, Stellantis, and Volvo Cars, and covers the year 2025 and the first three months of the current year, the newspaper specifies. The United States raised tariffs on European cars from 2.5% to 27.5% in early April 2025, and although in August, after the signing of the trade deal between the U.S. and the EU, the rate was reduced to 15%, it severely impacted automakers, the article states. The increase in tariffs exacerbated the problems faced by European car manufacturers, who are already dealing with fierce competition in China and incurring costs associated with the transition to electric vehicles, FT notes. Volkswagen was hit hardest by the American tariffs — the company reported costs of €3.6 billion due to Trump’s tariffs, the newspaper clarifies. BMW spent about €2.1 billion on tariffs, which includes duties on imports to the European Union from the U.S. and China, Mercedes-Benz's tariff costs amounted to €1.3 billion, while Stellantis incurred €1.2 billion, but most of this company's expenses are related to trade between the U.S., Mexico, and Canada, the article states. In May 2026, Trump threatened to raise tariffs on imports of European cars to 25%, giving the EU time to fulfill the trade agreement with the U.S. by early July. If the American president's threat is realized, it could cost Volkswagen, BMW, and Mercedes an additional €2.6 billion in 2026, FT writes, citing estimates from Bernstein analysts, warns Forbes magazine.