Overview

• The US has implemented a 10% base tariff and 25% duties on cars, steel, and aluminum imports from the EU, impacting Germany's export-driven economy.
• German municipalities, represented by the Deutscher Städte- und Gemeindebund, expect lower corporate profits to reduce trade tax revenue, straining local budgets.
• André Berghegger, head of the municipal association, warns that cuts to infrastructure investments are unavoidable, risking economic consequences given a €186 billion backlog.
• The association represents approximately 11,000 municipalities and is urging measures to mitigate the financial fallout from the tariffs.
• The EU has suspended its 20% flat tariff on US imports for 90 days, but no immediate resolution to the trade dispute is in sight.