Several automakers have paused deliveries, while new tariffs from the Trump administration are creating uncertainty and car queues at US ports.
The situation is coming to a head at American ports, where thousands of imported cars from brands such as Audi, Jaguar Land Rover and Aston Martin are sitting idle.
The reason is new tariffs introduced by President Donald Trump, which have caused car factories to stop shipments to the United States.
Several automakers are now holding their cars at both American and European ports. The goal is to avoid being hit by the new tariffs, while uncertainty about the rules is causing confusion throughout the automotive industry.
New car shipments are being postponed in the hope of political compromises, according to logistics industry sources. Some ports are close to capacity limits, and one chief executive warns that the situation “could get ugly within weeks” if clarity is not forthcoming.
European ports and car manufacturers slow down
In Germany, Bremerhaven, one of the world's largest car ports, reports that up to 50 percent of shipments to and from the United States could be lost. The American market accounts for almost a third of the port's total car traffic.
“We will also feel the consequences,” says Matthias Magnor, director of BLG Logistics, which operates the port of Bremerhaven.
Meanwhile, automakers are trying to find alternative solutions. Some are asking to have cars temporarily stored in duty-free warehouses in the United States. Others are keeping the cars in Europe and waiting to ship them until the customs regulations are clear.
25 percent tariff hits the entire industry
The new tariffs of 25 percent came into effect last week and apply to both cars and a wide range of spare parts.
From May 3, even more parts will be affected, although with certain exceptions for cars from Mexico and Canada.
According to a German car executive, there is still great confusion about how exactly the tariffs will be enforced.
“Is an engine a part, or does it apply to every screw in the engine?” the boss asks rhetorically.
However, the US has stated that cars that comply with the 2020 trade agreement between the US, Mexico and Canada will initially be exempt from tariffs.
But many automakers struggle to document where each component in their cars comes from – a difficult and time-consuming task in a global production system.
According to several experts, the strategy at the moment is to “wait and see,” while the auto industry hopes that the tariffs will be temporary.
