The tariff hike on cars and trucks from the European Union announced by US President Donald Trump could cost Germany nearly $17.58 billion in output, an economic institute told Reuters.
The estimate from the Kiel Institute for the World Economy (IfW) on Saturday highlights the exposure of the EU’s largest economy to US import tariffs, which have already cost the German automotive industry billions.
“The effects would be substantial,” IfW President Moritz Schularick said, with output losses rising to around 30 billion euros over the longer term, according to the institute’s analysis.
Trump said on Friday he would increase the auto tariffs to 25 percent next week from a previously agreed 15 percent, saying the bloc had not complied with its trade deal with Washington.
“Germany’s already sluggish growth rate would be hit hard,” IfW economist Julian Hinz said.
The institute currently expects the German economy to grow by 0.8 percent this year.
