From Top Electric.

German automakers Volkswagen, Mercedes-Benz, BMW, Audi, and Porsche face a dire crisis in 2025, with net profits plummeting over 40% in Q1 due to slumping sales in China and escalating U.S. tariffs. On May 23, President Trump announced a 50% tariff on EU imports, effective June 1, unless production shifts to the U.S., sending shockwaves through the industry. Rather than retreat, these companies froze shipments, restructured supply chains, and suppressed price hikes to survive. Audi halted U.S. shipments, relying on dwindling inventories, while Porsche and Mercedes rushed vehicles to American dealerships. BMW and Volkswagen adjusted production, with BMW’s South Carolina plant at full capacity. The EU, led by Ursula von der Leyen, is countering with a €95 billion retaliation package targeting U.S. goods, risking a full-blown trade war. German officials, including Chancellor Olaf Scholz, emphasize strategic adjustments over factory closures, but the Ifo Institute warns of a 2% GDP hit. Consumers face looming shortages, longer wait times, and price hikes, while dealerships cut budgets and brace for chaos. The crisis threatens jobs, transatlantic trade, and NATO’s economic unity amid global tensions. With the EU preparing a WTO challenge and a $100 billion retaliation list, the next four weeks are critical. German automakers are adapting, but a 50% tariff could break the economic logic sustaining their U.S. presence, with ripple effects across industries.

For Business or Copyright contact: topunderrated.channel(at)gmail(dot)com

Disclaimer: Our content is based on facts, rumors, and fiction.