President Donald Trump’s new 25% tariffs on German car imports to the United States, set to take effect on April 2, could significantly alter global trade dynamics—potentially making the UK the most important export market for Germany’s automotive industry.
This perspective comes from leading audit, tax, and business advisory firm Blick Rothenberg, which suggests that German car manufacturers may look to deepen their ties with the UK as the US market becomes less profitable under the new tariffs.
Currently, the UK is the second-largest buyer of German vehicles, accounting for 11.3% of German car exports, just behind the US at 13.1%. However, the introduction of steep US tariffs could make the UK a more attractive alternative. “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,” said Viktor Gottschlich, Senior Manager and German Desk Deputy at Blick Rothenberg.
German automakers already have a strong presence in the UK, owning major British brands such as Bentley and Mini. Strengthening trade and supply chain operations in the UK could help offset potential losses in the American market. Notably, German-made cars would generally not be subject to UK tariffs, further incentivizing manufacturers to shift their focus.
The impact of the tariffs could also extend to the classic car sector. Gottschlich noted that Trump’s tariff announcement references “finished vehicles,” a term broad enough to potentially 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, significantly increasing costs for classic car businesses,” he explained.
Blick Rothenberg believes German carmakers may find increased engagement with the UK market to be a practical strategy for mitigating the risks posed by the shifting US trade landscape.
“Increased engagement with the UK market seems sensible for German businesses to compensate for a potentially bumpy US car market,” Gottschlich concluded.
With global trade patterns in flux, German automakers may be compelled to reorient their strategies—potentially reshaping the UK’s role as a key player in the European automotive sector.
