The president of the Munich institute “Ifo”, a leading economic research center, Klemens Fuest warned that the German economy could face serious consequences this year in case of new American tariffs.
“If this turns into a new trade war, Germany will face a recession in 2026,” Fuest told the “Bild” newspaper.
US President Donald Trump said on Friday, May 1, that he will raise tariffs on cars and trucks imported from the EU to 25 percent starting next week, accusing the bloc of not adhering to the trade agreement.
The EU has denied the allegations and said it is keeping its options open regarding a possible response.
In July 2025, Trump and European Commission President Ursula von der Leyen reached an agreement limiting tariffs on most EU imports, including cars and auto parts, to 15 percent.
The agreement has not yet received full approval from the bloc, which is not expected until June.
The US remains a key export market for German car manufacturers such as Porsche, Be-Em-Ve and Mercedes-Benz.
