U.S. President Trump's newly announced tariffs on all imported vehicles will deal a blow to Germany's automobile industry, a German economic expert said in Frankfurt on Thursday.
Trump on Wednesday turned his earlier threat into action by signing an executive order imposing 25 percent tariffs on all cars that are not made in the United States.
The move has sparked a wave of criticism across Europe, prompting political leaders, experts, and industry representatives to call for countermeasures. They have also urged the strengthening of trade ties with other partners to help offset the impact of rising tariffs.
The United States is the biggest importer of German vehicles, accounting for 13.1 percent of Germany's total car export, according to Germany's Federal Statistical Office.
As a pillar industry of the German economy, the automotive sector has faced a sharp decline in domestic production and a significant drop in profits since last year.
Amid these challenges, the U.S. decision to impose steep tariffs is expected to have a severe impact on Germany's auto industry, according to Horst Lochel, a professor of economics with Frankfurt School of Finance and Management.
"This will for sure have a negative impact, the German automotive industry is already under pressure. Now we have also Trump with these tariffs on exports from Germany to the United States, so we will be hit even more for the automotive industry," he said.
The expert noted that the traditionally close ties between Europe and the United States are weakening, which prompts a strategic shift toward Germany's increased economic engagement with other regions.
"The transatlantic relationship which we saw for the last 80 years after the end of the Second World War is on decline, if not already broken. And the other thing is probably we also move more to business with Asia, Africa, China, including Latin America to reduce the dependency of the United States, which of course again is also a transfer for Europe and Germany," Lochel said.
US new tariffs to significantly impact German auto industry: expert
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
