BERLIN, May 2 (Xinhua) -- A planned increase in U.S. tariffs on European car imports could cost Germany around 15 billion euros (17.6 billion U.S. dollars) in output in the short term, a German economic institute told Xinhua on Saturday, citing a rapid analysis.
Losses could rise to about 30 billion euros (35.2 billion dollars) over the longer term, the Kiel Institute for the World Economy (IfW) said.
"U.S. tariffs could significantly impact Europe's automotive sector, with Germany particularly affected," IfW expert Julian Hinz said, adding that highly integrated European supply chains remain vulnerable to trade shocks.
Other major auto-producing countries, including Italy, Slovakia and Sweden, would also face notable declines, the analysis said.
U.S. President Donald Trump on Friday threatened to raise tariffs on cars and trucks imported from the European Union to 25 percent starting next week, accusing the bloc of failing to comply with an agreed trade deal.
Hildegard Mueller, president of the German Association of the Automotive Industry (VDA), criticized the move, warning it would place a "serious burden" on transatlantic relations.
The additional levies would hit the German and European auto industry hard at a time when it was already under pressure and could affect U.S. consumers as well, Mueller said, urging Brussels and Washington to return to talks as soon as possible and abide by their agreed trade rules.
The United States is a major export market for German cars, according to VDA data. Of the 3.17 million vehicles exported by Germany in 2025, around 410,000 were shipped to the United States, down 9 percent year-on-year after auto tariffs were raised earlier in the year. ■
