German auto industry will lose €15 billion due to Trump's tariffs and raw material shortages

The German auto industry will lose €15 billion due to Trump's tariffs and raw material shortages

Germany's automotive sector is selling off shares. The reason is Trump's announcement to increase tariffs on European cars from 15% to 25%.

The tariff increase is expected to cost Germany nearly €15 billion. Furthermore, German automakers are facing a severe shortage of raw materials amid the conflict in the Middle East.

There is a huge shortage of helium, an important resource for the production of microchips, airbags, metalworking, and battery diagnostics.

About 40% of the EU's needs for this raw material are met through supplies from Qatar.