Berlin: Germany’s automotive industry is experiencing a downturn as recent data highlights the impact of US tariffs on foreign cars. The ifo Institute for Economic Research reported that the Business Climate Index for the industry dropped slightly from -30.9 points in March to -30.7 points in April this year.

According to Kuwait News Agency, the decline is linked to the 25 percent US tariff imposed on foreign cars, which began in early April. The US market holds significant importance for Germany’s automotive sector, being one of the key markets alongside domestic, European, and Chinese markets. The report emphasizes that 13.1 percent of German cars, especially sports models from Porsche and BMW, are exported to the United States.