In response to a threat by US President Donald Trump to raise tariffs on European Union car imports to 25%, several German economists warned on May 2 that such measures, if implemented, could have a significant impact on Germany's economy and automotive industry.
Given Germany's substantial share of the EU's total car exports to the US, some experts believe the proposed tariff hike would disproportionately affect German manufacturing. Ferdinand Dudenhoffer, head of the Center for Automotive Research, noted that other European countries export relatively fewer vehicles to the US, meaning the impact would be more concentrated on German companies.
Moritz Schularick, president of the Kiel Institute for the World Economy, stated that if the tariffs are enforced, they would have a "material impact" on Germany's economy. Trade experts at the institute estimate that the policy could reduce Germany's real economic output by around 0.3%, further weighing on an already sluggish growth trajectory.
Hildegard Muller, president of the German Association of the Automotive Industry, described the move as a "new heavy burden" on the sector and called on all parties to adhere to existing trade arrangements.
Some economists also suggested that Washington may be using tariff policy as a tool for leverage. Marcel Fratzscher, president of the German Institute for Economic Research, argued that Europe must adopt a firmer stance and resist pressure, warning that failure to do so could further increase costs for European economies, particularly Germany's export-oriented businesses.
European Parliament condemns move as "completely unacceptable"
Bernd Lange, chair of the European Parliament's Committee on International Trade, issued a statement on May 2 condemning Trump's tariff threat as "completely unacceptable." He said the move demonstrates a lack of respect for EU sovereignty and exposes the unreliability of the US.
Lange emphasized that only clear rules can effectively counter arbitrary pressure, urging the EU to respond with a firm and unified position, including the use of trade defense instruments such as anti-coercion measures to safeguard trade stability, employment, and economic development.
(Source: Wen Wei Po)
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