Berlin - Since April, the United States has significantly increased tariffs on European made cars, dealing a heavy blow to the European automotive industry and causing a sharp decline in profits for Germany's largest automaker, prompting them to seek opportunities in Asia.   
The recent agreement between the European Union and the United States has reduced the tariff rate from 25% to 15%, easing the current tension. But experts warn that this probation may be short-lived, as high export costs and lingering policy uncertainty continue to put pressure on the German manufacturing industry and weaken industry confidence.   
BMW, Mercedes Benz, and Volkswagen - the three major German car manufacturers - have all reported a sharp decline in profits in the first half of 2025, citing US tariffs as the main drag on earnings.  

BMW stated that the group's revenue decreased by 8.2% year-on-year, while net profit decreased by 29%. The company pointed out that the increase in tariffs is a key factor contributing to the weak profit margins of its core automotive business. Mercedes Benz's net revenue has decreased from approximately 6.1 billion euros (7.08 billion US dollars) a year ago to approximately 2.7 billion euros. 
Volkswagen Group reported a slight decrease of 0.3% in sales revenue. Its high-end brand Porsche has been hit particularly hard, losing approximately 400 million euros in additional tariff related expenses in the first half of the year alone. 
Despite recent tariff reductions, the overall industry sentiment remains very negative. Several companies have lowered their prospects for 2025. Hildegard M ü ller, President of the German Association of the Automotive Industry (VDA), stated that lower rates still add billions of euros in annual costs to car manufacturers, which is a heavy burden as they transition towards electrification.  
According to VDA data, Germany exported approximately 450000 cars to the United States in 2024. During the same period, German car manufacturers produced over 840000 cars in their US factories, with approximately half of them exported globally. This cross-border production model is particularly susceptible to sudden policy changes.  
Since early 2024, including Ford Stellantis、 Several car manufacturers and suppliers, including Volkswagen, ZF, and Bosch, have announced layoffs or factory closures in Germany and other European countries. 
Meanwhile, German car manufacturers continue to lag behind their American and Chinese competitors in the electrification race. 
In the context of increasing uncertainty in the transatlantic market and changes in trade policies, more and more German companies are turning to China for regulatory stability and clearer growth prospects. Through local production, technological cooperation, and targeted investment, automobile manufacturers are seeking to strengthen their position in Asia and accelerate structural transformation. 
Arno Antlitz, Chief Financial Officer and Chief Operating Officer of Volkswagen, recently expressed his firm confidence in expanding local platforms and battery partnerships in the Chinese market. 
BMW also announced a partnership with Chinese technology company Momenta to jointly develop the next generation of driver assistance systems tailored for local consumers. 
Sean Green, President and CEO of BMW Group China, said, "This strong collaboration, with the wisdom of China, supports BMW's strategy of 'creating together in China, for China, and at China's speed', taking it to new heights," while emphasizing the importance of utilizing complementary advantages and joint innovation to achieve breakthrough progress.   
Famous German automotive expert Ferdinand Dudenhoeffer said that the future of the automotive industry lies in China. He urged German and Chinese participants to expand cooperation in the fields of vehicles and supply chains.  
Dudenhoeffer said that BMW and Porsche provide performance advantages, while Mercedes Benz is leading in design and comfort, and all three are increasingly relying on China's advantages in battery technology and large-scale production to maintain competitiveness.  
Due to the recent US European tariff agreement bringing profound uncertainty to businesses, Michael Schuman, President of the German Federal Association for Economic Development and Foreign Trade, warns that the global trading system is facing increasing pressure and trade is increasingly being used as a geopolitical tool.  
He said that in the fragmented global landscape, China may be one of the pillars of regulatory stability for international companies.