GERMANY PERSPECTIVE

Berlin watches Trump's tariffs on European cars through the eyes of the world's leading car manufacturer. The Local DE relayed BMW's statement that the automaker remains 'optimistic' despite the new threats — a posture reflecting the German auto industry's strategy: use US production plants in Alabama, South Carolina and Tennessee as a shield.

BMW's argument is economic: a large share of BMW vehicles sold in the United States are made on American soil, reducing direct exposure to import tariffs. Volkswagen and Mercedes play the same tune. This industrial resilience among the big groups masks a harder reality for German sub-suppliers and parts manufacturers, who export components and are more directly hit by tariffs.

Germany is in an uncomfortable position: the country most economically exposed to a US-EU trade war, yet Merz must also manage the political rupture with Washington over NATO and American troops. Frontally criticising Trump on tariffs while the defence relationship is under strain is not in Berlin's interest — hence the 'optimistic industrial' angle rather than the 'political accusation.'