After the United States formally imposed a 15 percent import tariff on European automobiles, Germany’s three largest carmakers—Volkswagen, BMW, and Mercedes-Benz—have found themselves forced to navigate a difficult trade-off between brand identity and geopolitical reality. Facing the same policy shock, the three companies have responded in markedly different ways, offering a revealing case study for global automakers and supply chains grappling with a more protectionist era.

The South Korean government announced plans to invest KRW464.5 billion (approximately US$316 million) in the automotive sector in 2026, targeting research and development as well as infrastructure upgrades to accelerate the country’s transition to next-generation vehicles. Key priorities will include end-to-end artificial intelligence (E2E AI) for autonomous driving, software-defined vehicle (SDV) standard systems, and extended-range electric vehicle (EREV) powertrains.