Tariffs

The struggling sports car manufacturer Porsche has been forced to once again lower its profit forecast for 2025. Poor sales in China, and costs associated with the restructuring of the group, are weighing heavily on profitability.

Mercedes-Benz's earnings fell sharply in the first half compared to the same period in 2024. A job cuts programme and temporary tariffs of 27.5% for exports to the US were two significant factors.

Economists agree that a trade war results in losers on all sides. Nevertheless, some take the view that Trump's policies might actually strengthen Europe in some areas.

According to Katharine Neiss, chief economist for Europe at PGIM, the extent to which Germany's more expansive fiscal policy will stimulate growth depends on whether it is accompanied by structural reforms.

The EU Commission has announced punitive tariffs on e-cars produced in China. A thoughtless move with negative side effects.