German Economists Warn of Substantial Impact from U.S. Auto Tariffs

On May 2, multiple German economists warned that proposed U.S. tariffs on European Union automotive exports could produce significant economic consequences for Germany. The statements came in response to threats by U.S. President Trump to raise tariffs on EU vehicles imported to the United States.

Germany’s Exposure to Tariff Risk

German experts emphasized that Germany would face concentrated impact due to its high share of EU auto exports to the U.S. Ferdinand Dudenhöffer, director of the German Automotive Research Center, noted that other European countries have relatively limited export volumes to the U.S., meaning tariff measures would disproportionately affect German manufacturers.

Predicted Economic Impact

Moreitz Schularick, director of the Kiel Institute for the World Economy, stated that if tariff measures are implemented, they would produce “substantial impact” on the German economy. According to the institute’s trade specialists, the policy could reduce German real economic output by approximately 0.3%, further burdening an economy already experiencing slow growth.

Industry and Policy Response

Hildegard Müller, president of the German Automotive Industry Association, characterized the U.S. measures as a “new heavy burden” on trade relations and called on all parties to respect existing trade arrangements.

Tariffs as Strategic Pressure

Some German economists interpreted the tariff policy as a pressure tactic. Marcel Fratzscher, director of the German Institute for Economic Research, argued that Europe should adopt a firmer stance and “cannot be pressured again,” warning that further concessions would increase costs for European exporters, particularly German export-oriented firms.