Donald Trump’s tariffs have dealt a €1.3bn (£1.1bn) blow to Volkswagen after the German car giant’s portfolio of luxury brands suffered a drop in sales, the Telegraph reported. Marques such as Porsche and Bentley have been hit by the US president’s sanctions on foreign vehicles, which impose a 27.5pc tax on cars imported from Europe. Britain has struck a deal with Mr Trump to reduce the tariff to 10pc, but the larger penalty remains in place for the European Union, which is still locked in talks with the White House.

Pepco Group's German unit has filed for insolvency proceedings as it seeks to revamp its loss-making store network in the country, Reuters reported. Pepco Germany filed for the proceedings at a Berlin court. The unit operates 64 stores and employs around 500 people. All stores will remain open until further notice. Read more.

The insolvency of Ardian-backed mountain biking company YT Industries highlights the escalating challenges facing the global biking industry, driven by a confluence of tariffs, post-pandemic market shifts, and overreliance on private equity-driven growth, according to a CoinWorld analysis. Founded in Germany, YT Industries had emerged as a standout brand during the 2020–2022 outdoor gear boom, leveraging high-profile partnerships, free beer-laden showrooms, and aggressive marketing to capture market share.

A group of dozens of companies pledged Monday to invest at least 631 billion euros ($733 billion) in Germany over the next three years, sending a signal of confidence in Europe's biggest economy as the new government tries to breathe new life into it, the Associated Press reported. The economy has shrunk for the past two years and is expected to stagnate this year. Chancellor Friedrich Merz's administration has made revitalizing it a top priority since it took office May 6.

In June, the number of companies filing for bankruptcy in Germany increased 2.4 percent year-on-year, according to data published by the Federal Statistical Office (Destatis), Nova.News reported. “The transportation sector recorded the highest number of insolvencies per 10 companies, with 11.3 cases. The construction and restaurant sectors followed, with 9.8 insolvencies per 10 companies each,” the report states. Data published by Destatis shows that wholesale commodity prices in Germany increased 0.9 percent year-on-year in June.

The struggles continue for global automakers in China, Electrek reported. After halting production, Volkswagen announced it will close a plant in China. And that’s not all: Another OEM is filing for bankruptcy through its joint venture. Although it might not seem significant, China is one of, if not the most important markets, for Volkswagen, accounting for around 30% of its deliveries. Volkswagen has already halted production at its manufacturing plant in Nanjing and plans to close it officially later this year. The Nanjing facility was opened by VW’s joint venture, SAIC Volkswagen, in 2008.

Germany’s unemployment rate was unchanged in June, but signs of a loosening labor market remain as economic uncertainty around trade and geopolitics persists, the Wall Street Journal reported. The seasonally adjusted unemployment rate was 6.3% for a fourth consecutive month, data from Germany’s Federal Employment Agency published Tuesday said. However, there were 632,000 vacancies in June, 69,000 fewer than the same month of 2024, the agency said. Jobless claims rose 11,000, albeit that was a slowdown from the 33,000 in May.

Germany’s annual inflation rate fell in June to 2%, in line with the European Central Bank’s target, preliminary data showed. The new reading for Europe’s largest economy reflected a broader easing across the continent — a positive sign for the central bank as it weighs further rate cuts this year, SEMAFOR reported. “Overall, it’s safe to say that the days of high inflation are over for now,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, told Der Spiegel.