A US tariff increase on European vehicles from 15% to 25% could cost Germany 15 billion euros ($17.55 billion) in immediate economic output, according to the Kiel Institute for the World Economy. Long-term losses could double to 30 billion euros ($35.1 billion), economists warn, severely impacting Germany’s fragile 0.8% growth rate and hitting auto-reliant nations including Italy and Slovakia. President Trump cited EU trade non-compliance for the escalation, though German officials have urged a “wait and see” approach, questioning the threat’s legal basis.

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