Trump Backs Off On E.U. Auto Tariffs But Risks Remain For Buyers, Ports

BusinessPolicyTrump Backs Off On E.U. Auto Tariffs But Risks Remain For Buyers, PortsByKen Roberts,Contributor.Forbes contributors publish independent expert analyses and insights. Two decades analyzing U.S. trade data by port, country, export, importFollow AuthorMay 09, 2026, 05:00am EDTPresident Trump has threatened that all passenger vehicle imports from the European Union will face a 25% tariff starting next week.If the president follows through, it’s bad news for car buyers, particularly high-end vebicles, at a time when the average price of a U.S. vehicle passed $50,000 last year. It’s bad news for the U.S. seaports dependent on the fees assessed on the shipments, particularly in Georgia, California, Florida and Maryland. It’s bad news for the E.U. manufacturers and their workers, including not only in Germany but particularly in Slovakia. And it’s bad news for a president trying to lower inflation in the United States ahead of midterm elections while fighting a war in Iran that is increasing gas prices and facing a second rejection on the legality of his tariffs-dependent trade war with the world.In addition, the timing is not great. Overall U.S. motor vehicle imports fell 16.46% last year and are down 23.11% this year.The threatened tariff rate would jump from the current 15%, part of an agreement Trump struck last year with the European Union, to 25% – and comes on the heels of remarks from German Chancellor Friedrich Merz that the United States was being “humiliated by Iran” and had no stragegy. Trump also announced he was pulling 5,000 U.S. troops out of Germany. The reason Trump gave was that the E.U. was not moving quickly enough to reduce its tariffs on U.S. exports, which the European Union disputes.If the tariffs come to pass, they will primarily affect luxury brands like Porsche, BMW, Mercedes, Lamborgini, Ferrari and Bentley. Many European vehicles or models that are less expensive are manufactured primarily in the U.S. South, places like Alabama,...