Trump’s potential tariffs threaten European auto industry

President-elect Donald Trump’s pledge to impose sweeping tariffs on all goods coming into the U.S. could spell havoc for European automakers, with Germany’s struggling auto sector among the most vulnerable.

Speaking on the campaign trail in late September, Trump said he wanted to turn German auto giants into American car companies.

“I want German car companies to become American car companies,” Trump said in Savannah, Georgia. “I want them to build their factories here,” Trump said, according to CNBC.

Trump has since announced plans to impose new tariffs on China, Canada and Mexico as one of his first acts upon taking office. Those measures include a 10% tariff on all Chinese goods coming into the U.S., and a 25% tariff on all goods coming from Canada and Mexico.

Europe was not mentioned in Trump’s first tariff announcement, but EU policymakers are likely concerned that it’s only a matter of time before the president-elect turns his attention to the 27-nation bloc’s auto sector.