Now, Trump intends to transform Germany's automotive industry into American corporations.

• The imposition of a blanket tariff on all goods entering the U.S. by President-elect Donald Trump could cause significant damage to European car manufacturers.
• The possibility of U.S. tariffs on European autos is particularly challenging for Germany, as its top original equipment manufacturers (OEMs) are already struggling.
• According to Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, Germany's auto industry seems vulnerable to the tariff threats made by President Trump.

The imposition of a blanket tariff on all goods entering the U.S. by President-elect Donald Trump could cause significant damage to European carmakers, particularly Germany's struggling automotive industry.

During his campaign in September, Trump expressed his intention to transform Germany's automotive industry into American companies.

"In Savannah, Georgia, Trump stated that he wants German car companies to be American car companies and build their plants here. He also said that the word tariff is "one of the most beautiful words I've ever heard" and "music to my ears.""

In his first actions as president, Trump declared plans to impose new tariffs on China, Canada, and Mexico. Specifically, he announced a 10% tariff on all Chinese imports to the US and a 25% tariff on goods originating from Canada and Mexico.

The president-elect's first tariff announcement did not mention Europe, but EU policymakers are likely concerned that it's only a matter of time before he turns his attention to the 27-nation bloc's auto sector.

The possibility of U.S. tariffs on European autos is particularly challenging for Germany, as its top original equipment manufacturers (OEMs) are already struggling.

In recent months, economic weakness and sluggish demand in China, the world's largest car market, have led to profit warnings being issued by Volkswagen, Mercedes-Benz Group, and BMW.

According to Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, Germany's auto industry seems vulnerable to the tariff threats made by President Trump.

Last year, Germany's exports of passenger cars to the U.S. amounted to 23 billion euros ($24.2 billion), which is 15% of its total exports to the U.S. and makes Germany the largest exporter of passenger cars in Europe.

The imposition of tariffs on Germany's carmakers would worsen an already unfavorable situation, according to Luman.

"The automotive industry is linked to the steel and chemical industries, making it the entire supply chain that's involved, according to Luman's statement to CNBC via video call."

A German government spokesperson declined to comment when contacted by CNBC.

Volkswagen, BMW and Mercedes-Benz

Some analysts doubt Trump's promise to transform German car companies into American ones, but they caution that increased U.S. tariffs will worsen the difficulties faced by the global automotive sector.

Michael Robinet, executive director of automotive consulting at S&P Global Mobility, stated via video call to CNBC that the campaign trail's rhetoric about imports would result in some pressure, which could be enforced through a tariff or another unilateral action.

The persistent 4% unemployment rate in the United States remains a concern for many economists, including myself, as it presents challenges in attempting to create more jobs in the country.

The U.S. president-elect has promised to impose a blanket duty of 10% or 20% on all goods imported into the country, apart from his proposed tariffs on China, Canada, and Mexico. However, it is uncertain whether this pledge will be enacted as U.S. policy.

A Volkswagen spokesperson confirmed to CNBC via email that they are assessing the tariffs proposed by Trump.

The company based in Wolfsburg stated that more than 90% of the vehicles it sells in the U.S. market are manufactured in North America and meet the criteria for duty-free treatment under the free trade agreement between the U.S., Canada, and Mexico (USMCA).

It is believed that Trump's proposed tariffs on Canada and Mexico would put an end to the USMCA.

Mercedes Benz, with over 11,000 employees in the U.S., primarily manufactures passenger cars and vans in 12 key locations. A spokesperson for the company stated, "We anticipate a productive conversation with the new administration in the U.S." to CNBC.

BMW, which declined to comment on Trump's tariff threats, has a presence in 12 U.S. states with approximately 30 locations, including the world's largest BMW production facility in Spartanburg, South Carolina.

The stock prices of Volkswagen and BMW have decreased by approximately 23% and 13%, respectively, year-to-date.

'Everyone just needs to be ready'

Julia Poliscanova, senior director for vehicles and e-mobility supply chains at the campaign group Transport & Environment, stated via video call to CNBC that Trump wants more tariffs, so everyone needs to be prepared.

Poliscanova stated that it is crucial for Europe to maintain its own path, whether it is related to the European Green Deal or the electrification plan. Trump's actions may hinder America's progress in clean technology and electric vehicles, providing Europe with an opportunity to accelerate.

Although it may be detrimental to German car manufacturers in the short term, it is crucial to comprehend that this is the reality of the world. Nevertheless, we must prioritize what is best for Europe and its industrial interests, which does not involve slowing down.