Even before winning the US presidential elections, there were fears that Trump would impose tariffs on car imports. Yesterday, the threat was confirmed with the announcement of a 25% tariff on all vehicles exported to the US.
The measure should have little impact on the Spanish automotive industry. At least in the factories, since as of April 2024, they do not send cars to that country, nor do they export them in parts to other countries from where they could be sent to the US once assembled.
Regarding the other significant aspect, the manufacturers of car parts, Sernauto's industry association indicates that they are waiting to understand the details of the tariffs, which would be applied starting from April 3, as "initially, they refer to finished cars. If they also affect the parts used for assembly," it would impact them doubly: both on components sent directly to the US and those sent to other countries (especially the EU, but also possibly Mexico) for car assembly that ultimately end up in the hands of American buyers.
Specifically, the vehicle manufacturers' association Anfac recalls that in 2023, just under 52,000 cars were exported to the US. The vast majority were Ford Transit Connect units assembled in the Valencia plant until April 2024. The rest were Mercedes Class V and Viano models made in Vitoria. The latter manufacturer has decided not to homologate these vans as taxis in North America, so if they do not change their mind, they will also stop sending them.
Just 2% of total production
Therefore, the figures are minimal in relation to the total production of Spanish plants. Last year, they produced a total of 2.37 million units, with almost 90% sold abroad, and of those, seven out of 10 in the EU. Meanwhile, historical data indicates that the number of cars exported to the US reached its peak in 2014 (52,100 cars), but then gradually decreased in the following years to 24,300 cars in 2019. After the pandemic, the figure for 2022 was 21,300 cars, according to Anfac. In the best-case scenario, this represents just 2% of the total production volume.
This situation contrasts with, especially, Germany, which produces over half of the cars that the EU exports to the US. In 2022, the last year with official data, European car manufacturers sold nearly 740,000 vehicles in the US, amounting to 37.4 billion euros. These figures position the US as the second foreign market for cars made in Europe, only behind the UK. In terms of value, this represents over a fifth of the revenue the EU generates from car exports. Meanwhile, the European continent only purchased 271,476 cars made in the US (valued at 8.7 billion) in the same period, according to a report from the European manufacturers' association Acea.
It is precisely this association that has reminded Trump that "European car manufacturers have been investing in that country for decades, creating jobs, driving economic growth in local communities, and generating significant tax revenues." "We urge President Trump to consider the negative impact of the tariffs on both global car manufacturers and the US national industry," said Sigrid de Vries, general director of Acea.
"They will affect imports to the US, a penalty that will likely be paid by local consumers, but the measures on car parts will also harm manufacturers producing cars in the country for export," she added. According to Acea, European brands with local factories export between 50% and 60% of that production, "which represents a significant positive contribution to the US trade balance."