Trump's Auto Tariffs Threaten Germany's Economic Recovery, Stocks Plunge

President Trump's recent announcement of a 25% tariff on all imported vehicles is significantly impacting the German automotive industry and raising concerns about US-European trade relations. Shares of major German automakers, including Porsche, Volkswagen, and Mercedes-Benz, fell sharply, with estimates suggesting a potential decline in Germany's GDP of up to 0.5%. The DAX index dropped by 1% as investor confidence waned, and analysts warned of increased vehicle prices in the US by $5,000 to $10,000. The tariffs are expected to complicate the economic landscape further, with potential retaliatory measures from the EU on the horizon. Experts indicate that the tariffs could disrupt supply chains and negatively affect the profitability of affected manufacturers. The situation is evolving, with market responses and strategic shifts in the automotive sector being closely monitored.