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Mood darkens further in German auto sector under strain of tariffs
Published by Global Banking & Finance Review®
Posted on June 3, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 3, 2025
1 min readLast updated: January 23, 2026
The German auto sector faces increased strain due to US tariff uncertainty, with sentiment worsening in May as major carmakers engage in talks to mitigate impacts.
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)
Sentiment in the German automotive industry has deteriorated further in May, with the Ifo institute reporting a fall in its business climate index to -31.8 points.
German carmakers like Volkswagen, BMW, and Mercedes-Benz are struggling with weak European demand and stiff competition from abroad, compounded by uncertainty surrounding U.S. tariffs.
The Ifo survey found that companies' assessment of their current situation improved somewhat in May but remained low at -35.3 points.
Business expectations in the sector fell to -28.3 from -25.2 points in April, indicating a pessimistic outlook among companies.
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