The Kiel Institute recently warned that the German auto industry could lose 15 billion euros (about 17.6 billion U.S. dollars) in short term from the 25 percent U.S. tariffs on cars of the European Union (EU).
The Kiel Institute, one of Germany's top five economic research institutions, reported on May 1 that the European automotive supply chain remains highly vulnerable to trade conflicts. According to its analysis, new U.S. car tariffs could result in short-term losses of 15 billion euros for Germany's auto sector, with long-term losses potentially reaching 30 billion euros.
In 2025, Germany exported approximately 3.17 million passenger cars, of which nearly 410,000 went to the United States, down nine percent year on year, according to the German Automotive Industry Association.
U.S. President Donald Trump said on May 1 on Truth Social that the EU was not complying with a trade agreement, and announced he will raise tariffs on European cars and trucks to 25 percent.
In response, the European Commission -- the executive arm of the 27-nation EU -- said it will keep options open to protect the EU's interests. A European Commission spokesperson said on the same day that the EU is implementing the relevant trade agreements in line with standard legislative procedures, and continues to keep the U.S. side fully informed throughout.
Leading research institution warns German auto industry could sustain heavy loss due to U.S. tariff hike
Leading research institution warns German auto industry could sustain heavy loss due to U.S. tariff hike
