Germany’s Auto Industry Outlook Plummets Amid Escalating U.S. Tariff Threats
(MENAFN) The business environment in Germany’s automotive sector is worsening as uncertainty intensifies over possible US tariffs, revealed fresh data Tuesday from Munich’s ifo Institute for Economic Research.
The ifo Business Climate Index for the German auto industry fell further to minus 31.8 points in May from minus 30.7 in April, continuing its downward spiral.
“The confusion surrounding the US tariffs is causing problems for the automotive industry in Germany,” said Anita Wolfl, an industry expert at ifo.
Business expectations also declined, with the sector’s index dropping to minus 28.3 points from minus 25.2, signaling increasing anxiety about future prospects. Still, firms slightly upgraded their assessment of current business conditions, with the index nudging up to minus 35.3 from minus 36.
"The US President’s volatile tariff policy continues to have a noticeable impact on the industry’s export expectations: Although the figure improved significantly again in May to -0.8 points, it had nevertheless fallen in April to -11.6 points," the institute noted.
The tariff dispute escalated on May 23 when US President Donald Trump tweeted that trade negotiations with the EU were "going nowhere" and announced a proposed 50% tariff on EU goods starting June 1.
Following a phone call between EU Commission President Ursula von der Leyen and Trump, the US postponed the planned 50% tariff until July 9, 2025. Meanwhile, the EU committed to accelerating trade talks with the US.
Currently, the European Commission and the US administration are engaged in efforts to reach a trade compromise.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
