BMW, Mercedes and other European earnings in their profits in their profits automakers Thanks to the new trade agreement concluded by the European Union (EU) with the USAaccording to Bloomberg.
The shares of European automakers are rising on Monday (28.7.2025) after the announcement that the EU import duty will be reduced to 15% from 27.5%. In addition, BMW and Mercedes benefit from tariff exceptions for about 185,000 vehicles exported annually from their US plants, according to analyst Michael Dean.
The deal offers a degree of clarity in a basic market for Mercedes, BMW, Porsche and Volvo. Since Donald Trump imposed duties in April, automakers have warned of additional dollars and increased supply chain complexity, with many of them reviewing down or abandoning their financial goals.
Automotive analyst Matthias Schmidt commented on Sunday night (27.7.2025): “It is the best possible result from a situation that seemed to evolve badly. I believe that CEOs in Germany and Sweden will sleep calmer tonight than in previous weeks. “
However, the new figure remains significantly higher than the previous 2.5% that was in force before Trump started his commercial moves, forcing companies to weighing whether they would raise prices or carry more production in the US.
Germany’s Chemical Industry Association (VCI) – which includes companies such as BASF that supply car manufacturers – warned that new duties are still seriously affecting Europe’s industry.
“If you are waiting for a hurricane, you are grateful when a storm comes,” VCI President Wolfgang Gross Edrup said. “However, the agreed duties remain very high. Europe’s exports lose competitiveness. “