Trump's "punitive tariffs" will affect European car manufacturers, but will mostly affect companies like Volkswagen. This is indicated by a detailed analysis prepared by Moody's.
According to the data in the report, VW is highly vulnerable not only because of exports of production from Europe to the United States, but also because of exports from Mexico to the United States. Trump is threatening to introduce 25 percent taxes on goods imported from Mexico, which will affect VW, since one of the Germans' large factories is located there.
And the tariffs from Europe to the United States may force VW, as well as other European manufacturers, to reorient themselves and transfer part of their production to the United States. But even if they do, these actions will lead to a deterioration in the profitability of production and at the same time to its increased cost.
These actions by the Trump administration further hinder the already struggling European automotive industry, which has already faced numerous challenges, and this is another one, and not a small one at that.