President Donald Trump’s sweeping new tariffs on car imports could reshape global trade routes — and push the UK into pole position as the most important export market for Germany’s automotive industry.
That’s the opinion of leading audit, tax and business advisory firm Blick Rothenberg.
With a 25 per cent tariff on all German car imports to the United States due to take effect on 2 April, German manufacturers may look to strengthen ties with the UK, which already ranks as the second-largest buyer of German vehicles worldwide.
Viktor Gottschlich, Senior Manager and German Desk Deputy at Blick Rothenberg, said: “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 currently accounts for 11.3 per cent of German car exports — just behind the US at 13.1 per cent. But with the US market potentially becoming far less profitable under the new trade barriers, the UK may become a preferred partner. “German-made cars would generally not be subject to UK tariffs, making the UK an attractive alternative,” Gottschlich noted.
German manufacturers already have a strong footprint in the UK, owning iconic British brands like Bentley and Mini. Expanding export operations and strengthening supply chains to and from the UK could help German automakers cushion the blow from a less viable American market.
The impact could also extend to the classic car sector. Gottschlich warned that the term “finished vehicles” — as used in Trump’s tariff announcement — may be broad enough to include vintage and collector cars. “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 said.
Blick Rothenberg believes that deepening engagement with the UK market — for both new and classic cars — presents a practical and potentially profitable path forward for German carmakers amid the unfolding US trade war.
“Increased engagement with the UK market seems sensible for German businesses to compensate for a potentially bumpy US car market,” Gottschlich concluded.
