Economists warn that these tariffs pose significant challenges to Germany's economy, particularly as automobiles are its most important export.

Schnitzer emphasized the importance of negotiating with the US without making concessions, instead threatening counter-tariffs and other measures.

Moritz Schularick, president of the Institute for the World Economy, noted that while the overall economic impact of these tariffs may be manageable, the affected industries and regions will suffer more significantly.

On March 26, 2025, President Donald Trump announced new tariffs on European auto imports, set to take effect on April 3, 2025, which could severely impact the German auto industry.

In response to the reinstated US tariffs on steel and aluminum, the EU is considering retaliatory measures, including tariffs on iconic American products like Harley-Davidson motorcycles and whiskey.

The European Union may also target US tech giants in retaliation, particularly in the services sector where the US enjoys a $100 billion surplus.

Notably, US digital companies have more customers in Europe than the total US population, underscoring the EU's significant market for these services.

Bernd Lange, chairman of the European Parliament's trade committee, has suggested implementing tariffs on digital services dominated by American companies such as Google, Amazon, and Netflix.

Clemens Fuest, president of the Ifo Institute, recommended a dual approach for the EU, combining dialogue with the US and credible threats of countermeasures to encourage the US to retract its tariffs.

In light of these developments, discussions are underway in Europe about targeting US digital corporations, indicating a potential escalation into a tech trade war.

Trump's administration aims to eliminate EU digital laws that negatively impact US corporate profits, raising concerns about a transatlantic tech trade conflict.

Unlike previous trade disputes, the current administration's concerns extend beyond national security to include EU regulations like the Digital Services Act, which are perceived as disadvantages for American tech companies.