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‘Another nail in the coffin’: Germany’s car industry faces up to Trump’s tariffs
- Germany's car industry faces challenges due to Trump's US tariff policies, with Volkswagen workers expressing concerns about job security and the industry's future.
- The imposing 25% tariff on car imports by the US, increased from 2.5%, has left workers feeling uncertain and worried about the industry's fate.
- Workers at Volkswagen's factory in Wolfsburg fear the potential impact of the tariffs on the German car industry, which has already faced past setbacks like the 'dieselgate' scandal.
- Germany's trade deficit with the US is significant, leading to projections of a €200 billion loss over four years and a 1.5% drop in GDP for Germany.
- Volkswagen has taken steps to respond to the tariffs, halting certain shipments and introducing import fees on affected vehicles.
- While major German carmakers have operations in the US, they are not immune to the tariffs as parts are imported, leading to potential price increases for cars.
- Experts predict average price rises of $5,000-$10,000 for cars, with luxury vehicles potentially increasing by up to $50,000, impacting sales.
- German industry experts warn of significant damage to manufacturers and suppliers, predicting potential job losses in Germany if the tariffs persist.
- Economists suggest that Germany should focus on fortifying its economy internally and consider reciprocal taxes on digital companies to navigate the tariff turmoil.
- The future of Germany's economy may lie in internal reforms and EU collaboration to counter the impact of US tariffs, according to leading economist Marcel Fratzscher.
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