Trade agreement disputes continue, costs are shifted to the United States, European car companies collectively take stock of the heavy blow from tariffs.

When President Trump's tariff stick hits the European car industry, the once glorious German luxury car companies are collectively falling into a winter of plummeting profits. The latest financial data shows that European automotive giants such as Mercedes-Benz, Porsche, and Audi have experienced a cliff-like decline in performance in the first half of the year. This trade storm triggered by American unilateralism has already had a heavy impact on European manufacturing. Although the US and the EU reached a trade agreement on July 27, leaders of several European business organizations, including the automotive industry, condemned the damage the new agreement would cause to the EU economy. According to Reuters on July 31, some European luxury car manufacturers, including Porsche and Aston Martin, have raised the prices of their products in the US market, which may pave the way for other major brands to follow suit, as European car companies begin to pass on the cost of tariffs to American consumers.