Porsche, BMW and Mercedes-Benz are facing renewed pressure after the United States announced higher tariffs on imported European vehicles.

The move has intensified concerns within Europe’s already struggling automotive sector.

Shares in major German carmakers fell after President Donald Trump increased tariffs on imported European cars to 25 percent, reversing part of an earlier agreement between Washington and Brussels.

Industry leaders fear the decision could weaken profitability and disrupt export demand.

European automakers are already dealing with rising competition from Chinese EV companies, slowing consumer demand and the expensive transition toward electric vehicles.

Additional tariffs could force manufacturers to increase prices or shift more production into the United States.

Executives within the European automotive supply chain described the tariff increase as another major challenge for an industry already under pressure from high energy costs and weak economic growth across several regions.

Analysts say the tariff dispute could further strain transatlantic trade relations while accelerating efforts by automakers to regionalise manufacturing operations and reduce exposure to international trade disruptions.

Source: Reuters