Germany stands to lose up to €31 billion annually due to new US tariffs, an eye-popping figure that could deal a serious blow to Europe's largest economy. Analysts at the consulting firm Deloitte issued this warning, outlining the risks facing Germany as transatlantic trade tensions escalate.

According to Deloitte, German exports to the United States could fall by as much as 20% over the medium term. However, the report suggests that some of the damage could be offset by shifting trade flows toward other markets within the EU, as well as toward Indonesia and South Korea. In this case, losses would shrink to around €7.1 billion.

Germany's machinery sector would take the hardest hit. Deloitte estimates that the industry could lose €7.2 billion annually. Pharmaceutical companies stand to be short by another €5.1 billion. The country's chemical, automotive, and electrical engineering industries would also feel the pinch.

As part of the recently signed US-EU trade deal, European goods entering the US will face a 15% tariff, while American exports to Europe will be tariff-free. In return, the European Commission has pledged to purchase $750 billion worth of US energy exports and invest an additional $600 billion in the American economy.

Earlier, Germany's steelmakers association, Wirtschaftsvereinigung Stahl, welcomed the fact that both sides managed to avoid a deeper trade conflict. However, the group warned that the current agreement does little to improve the "catastrophic situation" facing Europe's steel sector. German Chancellor Friedrich Merz acknowledged the tough reality, stating that the 15% tariff rate was "the best that could be achieved under the given circumstances."