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Audi Warns US Tariffs Could Hit SUV Launch and Profits

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Audi has warned that a potential U.S. tariff increase on European car imports could have a “significant” impact on its business as it prepares to launch its largest SUV in the American market this summer. The proposed 25% tariff, threatened by U.S. President Donald Trump, would particularly affect models like the Audi Q9, which is produced in Slovakia and exported to the U.S. The company currently relies heavily on imports from Europe and Mexico, as it has no production facility in the United States.

Audi’s finance chief said the company is still assessing the situation but acknowledged that the tariffs would place a heavy burden on operations. He added that Audi, along with parent company Volkswagen, is exploring options to establish manufacturing in the U.S., though such a move would likely require government support such as subsidies or tariff relief to be viable.

The automaker reiterated its 2026 profit outlook, which does not factor in any additional tariff increases beyond the current 15% duty already in place, costing the Volkswagen Group around €4 billion annually. Meanwhile, the company continues its cost-cutting efforts, including plans to reduce around 7,500 jobs by 2029, as it faces mounting pressure from tariffs and strong competition from Chinese automakers.

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Car Ramming in Leipzig Leaves Two Dead, Dozens Injured

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A tragic incident unfolded in Leipzig, where a car drove into a crowd in the busy Grimmaische Straße area on Monday afternoon, leaving two people dead and at least 22 others injured. Authorities confirmed that three victims are in serious condition. Emergency services quickly responded as chaos spread through the central shopping district following the high-speed collision.

Mayor Burkhard Jung stated that the 33-year-old German suspect has been arrested, though the motive behind the attack remains unclear. Officials believe the act was carried out by a lone perpetrator, with no immediate indication of a broader threat to public safety. Michael Kretschmer noted that the suspect had a history of mental illness.

Prosecutors have identified the victims as a 63-year-old woman and a 77-year-old man, both German citizens, and confirmed that the suspect is being investigated for murder and attempted murder. Authorities emphasized that there is currently no evidence suggesting a political or religious motive. The incident has once again raised concerns, as Germany has witnessed similar car-ramming attacks in recent years.

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Germany Calls for Stronger European Defence After U.S. Troop Cut

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Boris Pistorius has urged Europe to take greater responsibility for its own security after the Pentagon announced plans to withdraw 5,000 troops from Germany. The move comes amid rising tensions between the United States and its European allies over issues including the Iran conflict and trade disputes, further straining transatlantic relations.

Pistorius said the withdrawal, which affects part of the roughly 35,000–40,000 U.S. troops stationed in Germany, was not unexpected. He stressed that Europe must strengthen its defence capabilities, adding that Germany is already expanding its military, accelerating procurement, and investing in infrastructure. Plans are underway to increase the size of the Bundeswehr from about 185,000 to 260,000 personnel.

The decision will also see the cancellation of a planned long-range fires battalion, which had been intended to bolster deterrence against Russia. Analysts warn that gaps in Europe’s military readiness and budget constraints mean it could take years for the region to independently meet its security needs, despite commitments from NATO members to step up defence efforts.

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Stranded Whale Rescued and Towed Toward North Sea

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A humpback whale stranded for over five weeks in shallow waters off Germany’s Baltic coast has been successfully moved using a specially adapted barge. The animal was coaxed into the water-filled vessel and is now being transported out of German waters toward the North Sea. The rescue effort drew widespread attention after earlier attempts to guide the whale back to deeper waters had failed.

The operation, funded by two German entrepreneurs, was celebrated by local officials and rescue teams, who described the moment the whale entered the barge as emotional and unforgettable. Authorities said the whale appeared stable during the journey, even showing signs of activity overnight, raising hopes for its survival.

However, marine experts and conservation groups remain cautious, warning that the whale is in a weakened condition and may struggle to recover. Concerns include skin damage from low-salinity waters and uncertainty about its ability to feed independently once released. While the rescue is seen as a remarkable effort, the whale’s long-term survival remains uncertain.

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German Economy Grows but Jobless Rate Crosses 3 Million

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Germany’s economy expanded more than expected in the first quarter of 2026, with gross domestic product rising by 0.3%, surpassing forecasts of 0.2%. The growth was mainly driven by stronger household consumption, increased government spending, and a rise in exports. However, the previous quarter’s growth was revised slightly downward, reflecting ongoing economic uncertainty.

Despite this positive start to the year, Europe’s largest economy continues to face challenges, including high energy costs linked to geopolitical tensions and increased competition from China. Inflation also climbed to 2.9% in April due to rising energy prices, prompting the German government to lower its annual growth forecast for 2026 to 0.5%.

Meanwhile, unemployment rose more sharply than expected, exceeding the 3 million mark in April. The number of jobless increased by 20,000 to 3.006 million, while the unemployment rate remained steady at 6.4%. Labour officials warned that there are still no clear signs of recovery in the job market, with hiring demand also showing signs of weakening.

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Merz Says Ties with Trump Remain Strong Despite Iran Dispute

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German Chancellor Friedrich Merz said his relationship with U.S. President Donald Trump remains positive despite a public disagreement over the Iran conflict. Speaking in Berlin, Merz acknowledged differences in opinion but stressed that communication between the two leaders continues.

The dispute highlights broader tensions between the United States and its European NATO allies over Iran, as well as ongoing concerns tied to the Ukraine war. Merz reiterated his skepticism about the Iran conflict from the beginning, emphasizing its economic consequences for Europe, particularly disruptions to energy supplies linked to the closure of the Strait of Hormuz.

Trump recently criticized Merz, accusing him of being lenient on Iran’s nuclear ambitions—an accusation the German leader has denied, maintaining that Iran must not acquire nuclear weapons. Despite the exchange, both sides continue diplomatic engagement, even as the conflict remains unresolved and continues to impact global markets.

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German Economy Sees Q1 Growth but War Clouds Outlook

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Germany’s central bank, the Deutsche Bundesbank, said the country’s economy likely recorded modest growth in the first quarter, supported by solid industrial output and resilient services activity. Despite weakening consumer confidence toward the end of the quarter, exports and business-related services helped sustain overall momentum.

However, the outlook for the second quarter remains fragile as the ongoing Iran conflict begins to weigh more heavily on Europe’s largest economy. The war has pushed up energy prices, disrupted supply chains, and increased uncertainty, all of which are expected to dampen growth. The Bundesbank cautioned that only slight expansion is likely in the near term, even as government spending aims to support recovery.

Rising fuel costs have already eroded household purchasing power, weakening private consumption further. In addition, softer global demand and cautious business sentiment are expected to impact exports and investment. While fiscal measures may provide some support, escalating geopolitical risks continue to pose significant challenges to Germany’s economic outlook.

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Lufthansa Strike Disrupts Travel as City Airlines Secures Pay Deal

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Tens of thousands of passengers across Germany faced major travel disruptions as Lufthansa cabin crew and its regional unit CityLine staged a day-long strike, leading to widespread flight cancellations at key airports. The industrial action, organized by the UFO union, affected major hubs including Frankfurt and Munich, with Frankfurt Airport alone reporting around 580 cancelled flights and roughly 72,000 passengers impacted.

Lufthansa management criticized the strike as “completely disproportionate,” while union representatives defended the move, saying stalled wage negotiations left them with no choice but to escalate. The strike highlights growing tensions within the airline group as employees demand better pay and working conditions amid ongoing restructuring in Europe’s aviation sector.

In contrast, Lufthansa’s newer subsidiary City Airlines reached its first labour agreement with the Verdi union, securing salary increases of 20% to 35% through 2029 along with improved benefits and working conditions. The agreement comes as Lufthansa plans to shut down CityLine by the end of the year and shift short-haul operations to City Airlines, raising concerns among CityLine employees over job security and future employment.

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Germany Suspends Approval Rule for Long Overseas Stays by Military-Age Men

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Germany has suspended a controversial requirement that men of military age seek approval for extended stays abroad, Defence Minister Boris Pistorius announced after public concern over new military service rules. The regulation, introduced under the Military Service Modernisation Act that took effect in January, had required males aged 17 and above to obtain permission before travelling abroad for more than three months, though it had not yet been enforced.

Pistorius clarified that during peacetime, citizens aged between 17 and 45 are free to travel without notifying authorities or requesting approval. The government has temporarily halted the permission process while military service remains voluntary, stressing that the measure was originally intended as a precaution tied to national defence planning amid heightened security concerns following Russia’s invasion of Ukraine.

The updated law seeks to strengthen Germany’s armed forces and allows conscription to be reinstated if voluntary recruitment falls short. Chancellor Friedrich Merz has pledged to build Europe’s strongest conventional army, with all 18-year-olds now receiving questionnaires about potential military service — mandatory for men and optional for women. From July 2027, 18-year-old men will also undergo medical examinations to assess fitness for possible service.

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Rescuers Give Up on Stranded Whale off German Coast

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Rescue teams in Germany have ended efforts to save a stranded humpback whale after more than a week of attempts along the Baltic Sea coast. The whale, first trapped on a sandbank in March, was briefly freed but later swam into increasingly shallow waters near Poel Island, where it became stuck again.

Experts say the animal is now too weak to survive, with its condition worsening despite repeated interventions. Officials noted that attempts to guide it back to deeper, saltier waters had failed, and further rescue efforts would likely cause unnecessary suffering.

Authorities have now established an exclusion zone around the whale, allowing it to die undisturbed. Officials described the situation as a tragic and rare incident, highlighting the challenges of rescuing large marine animals in difficult coastal conditions.

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