Trump’s tariffs dent U.S. auto reputation as Europeans turn to Chinese cars

Donald Trump’s tariff crusade is smashing what’s left of the U.S. auto sector’s reputation in Europe. New numbers show buyers across the continent are turning away from American cars and leaning into Chinese brands.

That’s data straight from Escalent’s Chinese Automotive Brands Impact report, which ran from May 21 to July 31 and surveyed 1,692 adults across Europe.

Escalent’s vice president of powertrain innovation, KC Boyce, said it’s not just the cars. “Geopolitics, tariffs, trade deals, the U.S. stance on Russia and Ukraine, is playing into European buyers’ sentiment about the U.S. and U.S. auto brands,” KC told Yahoo Finance.

Whatever image American cars had, Trump’s global brawl over trade has dented it.

Buyers ditch U.S. brands as trust drops hard

In 2024, only 44% of Europeans said they would consider buying a car from the U.S. Last year? That number was 51%. At the same time, interest in Chinese vehicles rose from 31% to 47%. KC said interest in other countries’ brands also went up, except America’s. U.S. carmakers were the only ones to fall behind.

This isn’t just about what people want to drive. It’s also about what they trust. KC said trust in Japanese goods went up to 54% from 50%, Korean goods rose to 34% from 30%, and Chinese goods climbed to 19% from 12%. The U.S., on the other hand, dropped from 31% to 24%. That’s a crash, not a dip.

KC also pointed out that affordability is part of the story. “Buyers in Europe expect Chinese vehicles to be cheaper,” he said. And that’s helping Chinese brands, even when their cars have better features than American ones. Price is king right now, and that’s where Chinese automakers are winning.

Electric vehicles are playing a role too. Europeans still care about EVs more than Americans. That gives Chinese brands an edge. They’re flooding Europe with battery electric vehicles (BEVs), while American carmakers, especially U.S. ones, are struggling to keep pace. “It does appear that European buyers tend to think of Chinese BEVs as being more trustworthy purchases,” KC said.

China’s BYD races ahead as Tesla struggles

Sales data shows that “trust” turning into money. In July, Tesla only managed 8,837 new car registrations in Europe, down 40.2% from the same month in 2023. That number covers the entire region, including the UK and EFTA. Meanwhile, Chinese automaker BYD registered 13,503 vehicles. That’s a 225% increase. They’re not just competing. They’re winning.

Total EV sales across Europe jumped 33.6% in July. All car registrations, regardless of powertrain, rose 5.9%. So the market’s growing. But American EVs are losing buyers.

Even if the U.S. sells more cars at home, KC said the slide in Europe is part of a bigger trend. It’s not just about autos. It’s about how people in Europe view U.S. goods in general. And right now, they’re not impressed.

Whether Trump’s tariffs caused all of this is still up for debate. But car shoppers from London to Luxembourg are already making up their minds, and they’re speaking with their euros.

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