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Tuesday, July 1, 2025

German automakers report surge in US sales ahead of expected tariffs

German carmakers Volkswagen and BMW have reported booming sales in the United States, just hours before US President Donald Trump is expected to announce a massive round of tariffs on EU goods.

Volkswagen said its first-quarter sales rose 7.1% to 87,915 vehicles, driven by strong performances from the Taos, Jetta and ID.4 models.

At the same time, Volkswagen subsidiary Audi reported a 3% drop in sales compared to the first quarter of 2024, although March sales were up 8%. 

BMW sold 87,615 vehicles under its core BMW brand in the first quarter, an increase of 3.7% compared to the same period last year. Sales of its electric vehicles were also impressive, up more than 25%.

The results suggest that long-threatened tariffs on imports from the EU may have led to preemptive purchases by US consumers. 

The United States currently imposes a 2.5% tariff on passenger cars from the EU, with a 25% levy on pickup trucks and heavy vehicles. Trump has announced additional tariffs of 25% on cars from the EU.

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