By GB News (World News) | Created at 2025-03-14 14:51:06 | Updated at 2025-03-14 19:23:51
4 hours ago
The US has issued a major signal it could impose tariffs on cars from all countries, including South Korea, Japan, Germany and the UK.
It comes after the US Commerce Secretary Howard Lutnick hinted that if tariffs were to be brought to the table for automakers, it would be imposed on all of them.
The potential tariffs are expected to be announced by President Donald Trump on April 2, with car makers eager to find out if they would be impacted.
Earlier today Lutnick told Fox Business that "if you're going to tariff cars from anywhere, it's got to be tariffing cars from everywhere".
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The US president is set to announce car tariffs on April 2
PA
The move comes amid escalating trade tensions between China, Europe and the US that have already taken a mounting toll on global companies' finances.
European carmakers are now bracing for significant impacts, with BMW already forecasting a €1billion (£770,000) hit to earnings this year.
Lutnick's comments suggest a blanket approach to automotive tariffs rather than targeting specific nations. "That would be fair, right?" the Commerce Secretary said when questioned about potential impacts on vehicles.
The remarks indicate the Trump administration is considering a comprehensive tariff policy that would affect all foreign automakers equally.
European manufacturers appear particularly vulnerable, with German premium brands like BMW having significant export operations to the American market.
BMW said newly imposed trade tariffs could dent its earnings which are forecast to be between five to seven per cent lower this year.
The premium carmaker's forecast factors in the impact of EU duties on its China-made EVs and US duties of 25 per cent on steel, aluminium and vehicle imports from Mexico.
But BMW executives struck an optimistic tone, stating that they did not expect the tariffs to remain in place for the whole year.
BMW forecast a huge profit dent due to the upcoming tariffs coming in across the US
BMW
Volkswagen has announced plans to double its US market share, supported by a $5.8billion (£4.4billion) joint venture with Rivian and $2billion (£1.5billion) in its Scout production facility. Stellantis has committed around $5billion (£3.8billion) in US investments.
BMW, notably the largest vehicle exporter by value in the US in 2023, produces around 400,000 vehicles annually in America.
Mercedes has pursued a similar strategy, focusing on light commercial vehicle production in the US.Volkswagen appears most vulnerable to higher US import tariffs, as its higher-end Audi and Porsche brands lack US production facilities.
