Berlin, May 03 (QNA) - President of the Munich-based ifo Institute Clemens Fuest has warned of significant risks to the German economy amid the threat of new US tariffs.

Fuest fears serious consequences should the European Union retaliate to tariffs recently announced by US President Donald Trump, according to (dpa).

"If this turns into a new trade war, Germany faces a recession in 2026," Fuest told the Bild newspaper in comments published on Sunday.

Trump said on Friday he will raise tariffs on cars and trucks imported from the EU to 25% starting next week, accusing the bloc of failing to comply with a trade agreement and escalating a long-running trans-Atlantic trade dispute.

Fuest said that the planned tariff increases would hit the German automotive industry at a time when it was already facing difficulties. (QNA)