Consultation conducted on draft directive safeguarding employees from hazards linked to ionizing radiation exposure.
The imposition of US tariffs of about 15% on German exports, particularly on automobiles, is causing a significant negative impact on Germany's export-oriented economy. Key export sectors such as the automotive industry are facing increased costs that reduce competitiveness and profitability, thereby threatening growth, jobs, and prosperity in Germany.
The 15% tariff on car exports, down from a previously feared 25%, still represents a heavy burden for German auto manufacturers like Mercedes-Benz, which have reported losses in the hundreds of millions of euros due to tariffs. German industry representatives warn that even a tariff rate at this level will have an "immense negative impact" on export-oriented sectors because Germany relies heavily on exports, particularly to the US market.
The tariffs also affect supply chains, causing changes that increase prices and operational costs across sectors connected to export production. These tariff pressures contribute to economic contraction; Germany’s GDP has shrunk for two straight years and is showing signs of continuing weakness in 2025, in part due to tariff-related uncertainty and cost increases on exports.
Economists attribute the shrinkage to the trade dispute with the US. Consumers are holding onto their money, and an impetus for the economy will only come later due to the prospect of multi-billion investments by the federal government. Ulrich Kater, Deka chief economist, calls for self-help to focus on the domestic economic area in Germany and Europe.
German exports to the United States could decrease by one fifth as a result of the tariffs. Lisandra Flach, head of the Ifo Center for International Economics, expects a negative impact of minus 0.2% on German GDP due to US tariffs. The consulting firm Deloitte predicts medium-term export losses of up to 31 billion euros for the German economy due to US tariffs.
The machinery, pharmaceutical, chemical, and automotive industries would be most affected by the tariffs. The economic output in the Eurozone increased by 0.1% in the second quarter, but Germany slightly contracted in the same period. Concrete orders, such as to the construction industry, are still pending, and industrial companies remain weakly utilized.
Despite the trade deal reducing worst-case tariff scenarios, concerns remain about the reliability of the agreements and the potential for tariff threats to return, further unsettling German exporters and economic confidence. Jörg Krämer, Commerzbank chief economist, predicts a further strong growth of 1.4% for 2026, with the federal government shifting a large amount of core budget spending into the special fund and quickly spending the released funds to boost the economy.
The key to a stronger recovery lies in the planned multi-billion-dollar investments from the special fund for infrastructure and climate protection, but Dany-Knedlik does not expect noticeable impulses until next year. Other European countries such as France and Spain performed better than Germany in early summer. U.S. President Donald Trump has imposed one-sided tariffs of 15% on imports from the EU.
In summary, while a full-scale tariff war was averted, the current US tariffs still weigh heavily on Germany's export-driven economy, causing lower output, increased costs, and a threat to jobs and growth in German industry, particularly in key sectors like automotive manufacturing. The focus now shifts to the planned investments and self-help measures to strengthen the German and European economies.
The tariffs on German car exports, causing increased costs and reduced competitiveness, are a concern for industries like Mercedes-Benz, warning of an "immense negative impact" on export-oriented sectors. Economists attribute the shrinkage in Germany's GDP to the trade dispute with the US, predicting a negative impact of up to 31 billion euros on the German economy due to US tariffs.
Despite the potential for stronger economic growth in 2026 with planned multi-billion dollar investments, the ongoing US tariffs and tariff threats are still unsettling German exporters and threatening jobs and growth in key industrial sectors, particularly automotive manufacturing.
