German Institute: US Tariffs Could Cost Berlin 15 Billion Euros

The German Institute for Economic Research (IfW) has issued a stark warning regarding the potential economic fallout from proposed US tariffs on imported automobiles. According to their assessment, Germany, Europe's largest economy, could face losses of nearly 15 billion euros if President Donald Trump follows through on his threat to increase tariffs on cars to 25%. This move, which follows previous agreements setting tariffs at 15%, could significantly impact the German automotive industry, which has already incurred billions in losses due to trade tensions. The IfW's projections extend to long-term production losses potentially reaching 30 billion euros, highlighting the severe consequences for Germany's export-oriented economy. The institute also notes that other European nations with substantial automotive sectors, such as Italy, Slovakia, and Sweden, are likely to suffer considerable damage. German officials have urged caution, suggesting a wait-and-see approach, as Trump's threats have historically been subject to change. Questions remain about the legal basis for these new tariffs and the justification for claiming the EU is not adhering to existing trade agreements. This situation underscores the fragility of international trade relations and the vulnerability of key European industries to protectionist policies.