After Announcement of higher US tariffs on cars from the EU The Munich Ifo Institute has warned of negative effects on economic growth in Germany this year EU in turn respond with tariffs on US products. “If this turns into a new trade war, Germany will face a recession in 2026,” said Ifo President Clemens Fuest Picture-Newspaper.
US President Trump had one on Friday Significant increase in import duties on vehicles from the EU announced. The USA want to increase tariffs on car and truck imports from the EU to the USA from 15 to 25 percent. The new rate should apply from next week. According to ifo boss Fuest, the tariff increases hit the German auto industry “in an already difficult situation.”
Südekum advises the EU to take “appropriate countermeasures”
Germany is responsible for a large part of car exports from the EU and would benefit from higher customs duties will probably be hit hard. The planned increase to 25 percent can be interpreted as the “start of an economic war against Germany,” said Ferdinand Dudenhöffer, an economist who specializes in the automotive industry.
The economist and advisor to Federal Finance Minister Lars Klingbeil (SPD), Jens Südekum, said Picturenewspaper, the EU should first wait and see whether the increased tariffs would actually be levied. He advised the EU to take “appropriate countermeasures” should this occur.
Trump’s tariff announcement came shortly after he became Chancellor Friedrich Merz (CDU) had criticized. Trump called on Merzto focus on ending the war in Ukraine rather than “interfering” in Iran’s affairs. In addition, Merz should “put his ailing country in order,” the US President said in online media on Thursday.