Research: U.S. increase in auto tariffs will cause Germany a loss of 15 billion euros

On the 2nd, a researcher from the Kiel Institute for the World Economy in Germany learned that an analysis by the institute shows that the United States’ plan to increase tariffs on EU automobile imports to the U.S. will have a significant impact on the German economy, with short-term output losses in the German automotive industry reaching 15 billion euros, and long-term losses potentially up to 30 billion euros. According to this analysis, the European automotive supply chain shows high vulnerability in trade conflicts, and a new round of U.S. auto tariffs will bring obvious shocks. Besides Germany, countries such as Italy, Slovakia, and Sweden will also face substantial losses. U.S. President Donald Trump posted on social media on the 1st that the U.S. will raise the EU’s auto tariffs from 15% to 25% next week, accusing the EU of not complying with the trade agreements between the two sides.
Hildegard Müller, president of the German Association of the Automotive Industry, warned that this move by the U.S. will also harm American consumers’ interests. She called on the EU and the U.S. to start dialogue as soon as possible and to jointly adhere to existing trade agreements. The U.S. is an important export market for German automobiles. According to data from the German Automotive Industry Association, Germany exported approximately 3.17 million cars in 2025, of which nearly 410k were sold to the U.S., a year-on-year decrease of 9%. (Xinhua)