EU auto exports to the U.S. continue to take a hit, falling again in February as automakers in the region feel the ongoing effects of tariffs.
The details: Exports overall in the European Union dropped by more than a quarter for the second straight month in February, though some sectors posted gains, Reuters reported.
EU auto exports, which saw tariffs rise from 15% to 25%, were down 22%, though the decline was not as steep as in the second and third quarters.
Exports from the 27-nation European Union to the United States fell 26.4% in February, following a 27.8% drop in January.
In 2025, EU auto exports to the U.S. declined 21.4% as a direct result of tariffs enacted by President Donald Trump, per ACEA.
Why it matters: The continued drop in EU auto exports could create added pressure on the supply and pricing of imported vehicles in the U.S., particularly for dealers relying on European brands.
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Between the lines: The drop in EU exports to the U.S. underscores the broader toll tariffs are taking on automakers in the region.
Volkswagen, Europe’s largest automaker, saw its operating profit more than halve in 2025 to 8.9 billion euros ($10.4 billion), due in part to tariffs.
Mercedes-Benz said its 2025 earnings dropped 57% on a $1.2 billion hit tied to President Trump’s tariffs.
BMW’s earnings before tax fell to 10.2 billion euros ($11.78 billion) in 2025 and are forecast to decline further in 2026 by between 5% and 9.9%.
What they’re saying: "Our world remains unstable, and numerous risks will persist in the current financial year," said BMW CEO Oliver Zipse after the company reported a 6.7% slump in 2025 pre-tax profit, per Reuters.
Bottom line: Tariffs are continuing to weigh on Europe’s automakers, and that pressure could eventually trickle down to U.S. dealers through tighter supply, higher costs, or both. For retailers selling import-heavy brands, the impact may become harder to ignore if export weakness persists.
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