'If VW disappears, people won't stay in the town anymore' - fears over Trump's car tariffs

27 March 2025, 22:12 | Updated: 28 March 2025, 08:01

At one factory in eastern Germany, they're pumping out a car part every second, cutting and pressing millions of pieces destined for the country's mega motor industry.

The HENNgineered plant sits on the edge of Zwickau, a city where the car is king. And when it comes to vehicles, America is Germany's most important trading partner.

In 2024, automotive exports to the US reached a total value of €36.8bn (£30.7bn), according to the German Automobile Association.

So, Donald Trump's decision to introduce 25% tariffs on all passenger cars and light commercial vehicles imported into the US is a big problem for manufacturers and suppliers alike.

"Such tariffs would be very hard. It could make companies decide to move to the US to produce there, which might also mean jobs are lost here in Germany," explains site manager Matthias Wissel.

Volkswagen is now the main local employer, providing around 10,000 jobs.

Read more: Trump's car tariffs condemned

But car building is in people's blood, with the first vehicle made here around 120 years ago.

The city museum proudly displays cars through the ages.

One room hosts shiny silver racing cars, another brightly coloured Trabants.

The city developed cars from the German empire right through to the current modern republic, explains Thomas Stebich, head of August Horch Museum.

While the immaculate car displays celebrate the city's pioneering past, tariffs are making many feel uncertain about the future.

"If nobody in the US buys a German car or less people buy German cars, it will have an impact, of course, because we need to build high numbers of cars here [for jobs]," Stebich says.