German economic circles: Tariffs imposed by the United States and Canada may have a substantial impact on German industry

In response to U.S. President Trump's threat to increase tariffs on EU cars exported to the United States, many German economists said on May 2, local time, that once the relevant measures are implemented, they may have a significant impact on the German economy and automobile industry.

Since Germany accounts for a relatively high proportion of the EU's overall automobile exports to the United States, some experts believe that the U.S. plan to increase tariffs on EU automobiles exported to the United States will have a particularly prominent impact on the German manufacturing industry. Ferdinand Dudenhoefer, head of the German Automotive Research Center, said that the scale of automobile exports from other European countries to the United States is relatively limited, so the relevant measures may have a more concentrated impact on German companies.

Moritz Schularik, director of the Kiel Institute for the World Economics in Germany, said frankly that if the tariff measures are implemented, they will have a "substantial impact" on the German economy. Trade experts from the agency predict that relevant policies may cause Germany's real economic output to drop by about 0.3%, further dragging down the already slow-growing economy.

Hildegard Muller, chairman of the German Automobile Manufacturers Association, believes that the US measures will impose a "new heavy burden" on relevant relations and calls on all parties to abide by existing trade arrangements.

In addition, some economists pointed out that the US tariff policy may be used as a pressure tool. According to Marcel Fratzscher, director of the German Economic Institute, Europe should take a firmer stance and "cannot be put under pressure", otherwise it will further push up the costs of the European economy, especially German export companies.

U.S. President Trump posted on social media on May 1 that because the EU has not complied with its bilateral trade agreement with the United States, the United States will increase import tariffs on EU cars exported to the United States next week. Trump said that tariffs on EU cars exported to the United States will be increased to 25%. If these cars were produced in the United States, there would be no tariffs.