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Cars and TransportationGermany

US tariffs pile pressure on German carmakers

03:35

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August 15, 2025

German luxury cars dominate the US market — but falling sales and rising tariffs are shaking consumer confidence. Is this the beginning of the end for Germany's automotive success story in the US?

German luxury car brands like BMW, Mercedes, and Audi remain top sellers in the US, but rising tariffs have begun to impact sales and profitability. Dealers report increased prices and consumer hesitation, with expectations of a 10% price hike on new vehicles once existing inventory runs out.


The German auto industry, heavily reliant on exports, faces billions in added costs due to US tariffs, despite recent reductions. As Europe's car market stagnates, the US remains a vital growth market — especially for luxury vehicles — prompting a shift toward used car sales to offset rising costs and maintain consumer demand.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

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