{"text":[[{"start":10.2,"text":"European carmakers have been hit with more than €8bn in tariff costs in the year since Donald Trump increased import duties, with the industry bracing for a fresh escalation in the trade war with the US. "}],[{"start":21.5,"text":"The figure, based on public statements by executives at Volkswagen, BMW, Mercedes-Benz, Stellantis and Volvo Cars, covered 2025 and the first three months of 2026 leading up to the anniversary of Trump’s auto tariffs. "}],[{"start":36.1,"text":"The US raised duties on European cars to 27.5 per cent from 2.5 per cent on April 3 last year as part of President Trump’s blitz of tariff increases. The rate was subsequently reduced to 15 per cent after a US-EU trade deal in August but has still hit carmakers heavily. "}],[{"start":55.900000000000006,"text":"“The operating environment has deteriorated significantly,” Volkswagen’s chief financial officer Arno Antlitz told investors last month, warning of US tariff costs of €4bn this year. “Against this backdrop, incremental cost measures will not be enough. We must fundamentally reshape our business model.”"}],[{"start":75.45,"text":"The spectre of even higher tariffs looms after the US president threatened this month to increase levies on European car imports to 25 per cent, accusing the bloc of failing to abide by last year’s deal. He has given the EU until early July to implement its trade deal with the US. "}],[{"start":93.2,"text":"Audi finance chief Jürgen Rittersberger told reporters this week that an increase in auto tariffs would place a “significant burden” on the manufacturer, which is one of 10 brands in the Volkswagen stable."}],[{"start":105.10000000000001,"text":"Tariffs have added to the challenges faced by European carmakers, already facing strong competition in China and contending with the costs of the transition to electric vehicles."}],[{"start":115.45,"text":"Volkswagen has reported €3.6bn in US tariff costs since the higher rates were implemented, the biggest hit among Europe’s car groups. BMW reported tariff costs of about €2.1bn, including duties on imports into the EU from the US and China, while Mercedes-Benz reported tariff costs of €1.3bn. "}],[{"start":137.6,"text":"Stellantis reported €1.2bn in tariff costs but the US manufacturing presence of the maker of Chrysler, Dodge and RAM Trucks brands meant that a larger proportion of these costs related to trade between the US, Mexico and Canada."}],[{"start":151.65,"text":"Were Trump to swiftly follow through with his threat of 25 per cent tariffs on European autos, it could cost the three German carmakers — Volkswagen, BMW and Mercedes — an additional €2.6bn in 2026, according to analysts at Bernstein. "}],[{"start":169.9,"text":"Carmakers would be examining measures to offset the cost of any increase in tariffs but further price rises could reduce sales volumes, said Bernstein analyst Stephen Reitman. "}],[{"start":179.8,"text":"With European car groups’ profits already under pressure, “it’s very hard to expect that the manufacturers are going to absorb all of that themselves”, he said."}],[{"start":190.3,"text":"Audi said it hoped talks between the US and EU would “avoid any further increase in tariffs”. "}],[{"start":197.4,"text":"The premium manufacturer is preparing the launch of its new Q9 three-row luxury SUV, which has been designed with US consumers’ preference for larger autos in mind. "}],[{"start":207.9,"text":"But the new flagship model will be produced in Bratislava, meaning that all exports to the US will face tariffs. Audi has talked about the possibility of establishing a production site in the US to circumvent tariffs but a decision on the investment has not yet been made. "}],[{"start":224.3,"text":"BMW chief executive Oliver Zipse said he was hopeful of a deal with the US administration, long sought after by European carmakers, that would offer a discount on tariffs to companies like his which produce cars in the country. "}],[{"start":237.8,"text":"“We have a lot of support [in the administration] but, of course, only if the first part of the deal is also carried out by the European Union,” he said. "}],[{"start":254.3,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778455977_3933.mp3"}