Import taxes on American vehicles is often an overlooked concept when talking about the latest cars. Yet we are forced to consider the idea when the United States President recently threatened to impose additional tariffs on US cars imported to the EU.

The threat was made on Twitter, in response to a recent 25% tariff on imports of steel and 10% on aluminum.

“If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!”


The US export is the largest export market for EU cars, taking up a solid 25% of the €192 billion worth of motor vehicles exported by the EU in 2016. About half of these go to Germany. So they are expected to take the largest hit from the proposed tariff change.

EU Trade Commissioner Cecelia Malmstrom was asked for her thoughts on the matter. She said that “it’s hard to argue on Twitter over these issues, but the European Union is a very open market.” While that is an appropriate response, it tells us little of their potential plans for the matter.

With the metal tariff taking place on March 23, we might see the price of American made vehicles rise to compensate. While if Trump's threats ring true, those in the EU can definitely expect to see a price jump on American vehicles.