U.S. Tariffs to Send Shockwaves Through German Industry

The U.S. has announced significant tariffs affecting German industry, potentially causing €200 billion in damage. Germany's major exports to the U.S. include cars, machinery, and pharmaceuticals. German industry leaders criticize the tariffs as harmful to global trade and warn of increased prices and potential job losses.

The United States has announced far-reaching tariffs that are expected to considerably impact German industry, potentially resulting in €200 billion worth of damage, according to industry leaders. These new tariffs affect a wide range of product categories, including cars, pharmaceuticals, and machinery, with the U.S. being Germany's largest trading partner as of 2024.

Dirk Jandura, president of the BGA association which represents German importers and exporters, acknowledged the substantial effect of these tariffs, stating they are likely to result in increased prices and reduced sales. This stance comes after President Donald Trump declared comprehensive duties on global trading partners, including a 20% tariff on EU products and a specific 25% tariff for car imports.

Wolfgang Niedermark of Germany's BDI industry association, and Hildegard Mueller of the VDA auto industry association, have condemned the tariffs as a severe challenge to international trade systems, arguing that they undermine the principles of free trade and could have long-term negative consequences for global economic growth and employment.

(With inputs from agencies.)