Mood darkens further in German auto sector under strain of tariffs

BERLIN (Reuters) -Sentiment in the German automotive industry deteriorated further in May, the Ifo institute said on Tuesday, reporting a fall in its business climate index for the sector to -31.8 points from -30.7 in April.

"The confusion surrounding the U.S. tariffs is causing problems for the automotive industry in Germany," said Ifo sector specialist Anita Woelfl.

Already battling with weak European demand and stiff competition from abroad, German carmakers Volkswagen, BMW and Mercedes-Benz are in talks with the U.S. administration for a deal to soften the blow of import tariffs.

The Ifo survey found companies' assessment of their current situation improved somewhat in May but remained at a low level of -35.3.

Business expectations, on the other hand, fell to -28.3 from -25.2 points in April, the institute said.

(Reporting by Rachel More; Editing by Kate Mayberry)