Europe’s carmakers face new tariffs from Trump, with the agreed 15% rate set to cost billions. The industry welcomes the planning security but calls for more measures to reduce trade barriers. German automotive industry to lose billions annually due to the baseline tariff. US previously imposed a 25% rate on car imports from Europe.

European auto stocks rose briefly but fell by 1.2% after the tariff agreement. Volkswagen, BMW, Mercedes, and Stellantis affected. Volkswagen suffers $1.5 billion in tariffs in 2025, lowering sales and profitability guidance. Luxury brands Porsche and Audi also impacted. European companies promised $600 billion in investment in the US as part of the deal.

Volkswagen in talks with the US Department of Commerce for a possible Audi factory in the US. Unclear if this investment is part of the promised $600 billion. EU to reduce import duty on US-made cars to 2.5%, possibly to zero. BMW and Mercedes to benefit as they produce SUVs in the US. Proposed mechanism for more favorable trade conditions supported by BMW and Mercedes.

Read more at Yahoo Finance: European carmakers get a reality check from Trump as shares slide