U.S. Tariffs Threaten German Industry and Global Trade Order

Major U.S. tariffs will significantly impact the German industry, a key exporter to the U.S. economy. The imposed duties could lead to increased prices and a decline in sales. German industry leaders express concern over the disruption of global trade rules and potential global economic repercussions.

Recent tariffs imposed by the U.S. administration are poised to heavily impact Germany's industrial sector, which plays a pivotal role as an exporter to the U.S. economy, according to industry leaders.

Dirk Jandura, president of Germany's BGA association for import-export, acknowledges the repercussions, stating, 'We will feel it,' as tariffs are expected to translate into higher prices and reduced sales. This follows President Donald Trump's announcement of extensive duties affecting most global trade partners, introducing a 20% tariff on European Union products and a distinct 25% tariff on car imports.

Hildegard Mueller, president of the German auto industry association VDA, criticized the move as undermining the global trade order and global economic growth, remarking that the tariffs represent 'America alone,' rather than 'America first.' In 2024, the U.S. was Germany's largest trading partner, exchanging goods worth 253 billion euros ($277 billion).

(With inputs from agencies.)