At one factory in East Germany, they’re pumping out a car part every second, cutting and pressing millions of pieces destined for the country’s mega motor industry.
The HENNgineered plant sits on the edge of Zwickau, a city where the car is king. And when it comes to vehicles, America is Germany’s most important trading partner.
In 2024, automotive exports to the US reached a total value of €36.8bn (£30.7bn), according to the German Automobile Association.
So, Donald Trump’s decision to introduce 25% tariffs on all passenger cars and light commercial vehicles imported into the US is a big problem for manufacturers and suppliers alike.
Image: Trump’s tariffs could prove a big problem for car manufacturers and suppliers like HENNgineered in Zwickau
Image: This factory makes a car part every second, cutting and pressing millions of pieces
Image: There are fears about future jobs after Donald Trump announced latest tariffs on car imports
“Such tariffs would be very hard. It could make companies decide to move to the US to produce there, which might also mean jobs are lost here in Germany,” explains site manager Matthias Wissel.
Volkswagen is now the main local employer, providing around 10,000 jobs.
But car building is in people’s blood, with the first vehicle made here around 120 years ago.
The city museum proudly displays cars through the ages.
One room hosts shiny silver racing cars, another brightly coloured Trabants.
Image: The August Horch Museum in Zwickau showcases the city’s long history of car making
The city developed cars from the German empire right through to the current modern republic, explains Thomas Stebich, head of August Horch Museum.
While the immaculate car displays celebrate the city’s pioneering past, tariffs are making many feel uncertain about the future.
“If nobody in the US buys a German car or less people buy German cars, it will have an impact, of course, because we need to build high numbers of cars here [for jobs],” Stebich says.
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If you want to understand how key the auto industry is to German identity, think mining to the UK in its heyday.
Around 700,000 people are employed in the industry, which generates more than 540 billion euros in sales a year.
But tariffs are not the first storm German car manufacturers have had to weather.
High energy and labour costs, competition from China and weaker domestic demand due to the ailing economy mean the German car industry has been cutting jobs.
Audi recently announced it will cut 7,500 administration jobs by 2029.
They’re not the only ones, but Trump’s tariffs news comes as a fresh blow to workers.
A representative on the VW works council in Zwickau cancelled our interview due to crisis talks.
All the workers we met seemed pessimistic and deeply worried for the plant and the city’s future.
Their concern is shared by Aliriza Oernek, who owns four restaurants in Zwickau.
He says in recent years they’ve seen many of their young people leave the area to seek jobs elsewhere. He fears fresh pain from tariffs will hurt the whole community.
“Volkswagen is the biggest employer in Zwickau, the main source of money for people who live here. If they were to disappear, then people won’t stay in the town anymore,” he says.
Image: Aliriza Oernek, owns four restaurants in Zwickau, and worries that tariffs will hurt businesses like his
Like its counterparts, Volkswagen is closely watching developments around tariffs and assessing how they could impact the supply chain and production.
All eyes are currently on the European Union to see how it will retaliate.
In a statement, a spokesperson for VW Group said they “share the assessment of most experts that US tariffs and any counter-tariffs will have negative consequences for growth and prosperity in the US and other economic areas… and continue to advocate for constructive talks”.
So, while car makers brace for impact, Germany’s vowed it will “not take this lying down”, calling for a “firm response” from the EU as it tries to protect its automakers from this new American attack.
“Complete families were wiped off the civil registration record by Israeli bombardment,” Khalil Al-Deqran, Gaza health ministry spokesperson, told the Reuters news agency.
Nasser hospital, in the southern city of Khan Younis, said it received the bodies of 20 people killed in strikes that hit houses and tents in the Muwasi area. Hamas described that as a “new brutal crime”.
Image: Smoking debris after an airstrike at a tent camp in Khan Younis, southern Gaza on Sunday. Pic: Reuters
Image: Saleh Zenati carries the body of his nephew killed in Khan Younis on Sunday. Pic: AP
In central Gaza, at least 10 people were killed in two separate strikes, according to the Al-Aqsa Martyrs hospital in the town of Deir al Balah.
Meanwhile, first responders from the health ministry and the civil defence reported at least 36 people were killed in multiple strikes in Jabalia, northern Gaza.
The Israeli military had no immediate comment on the latest strikes.
Israel has blocked the entry of medical, food and fuel supplies into Gaza since the start of March. It is attempting to pressurise Hamas into freeing Israeli hostages and has approved plans that could involve seizing the whole of Gaza and controlling aid.
It comes as peace talks between Israel and Hamas take place in Qatar this weekend, although sources told Reuters there had been no breakthrough.
Sky News Arabia reported that Hamas had proposed freeing about half its Israeli hostages in exchange for a two-month ceasefire and the release of Palestinian prisoners held by Israel.
A Palestinian official close to the talks said: “Hamas is flexible about the number of hostages it can free, but the problem has always been over Israel’s commitment to end the war.”
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3:14
On Saturday, Israel ramped up attacks on Gaza
Earlier on Sunday, Gaza’s health ministry issued a statement accusing Israel of “intensifying its systematic campaign to target hospitals”.
“After putting the European Gaza Hospital out of service a few days ago, the Israeli occupation has intensified its targeting and siege of the Indonesian Hospital in the northern Gaza Strip since dawn today,” it added.
Israel has previously denied deliberately targeting civilians and accused Hamas of using hospitals for military purposes.
This week, Israel said it had bombed the European Hospital because it was home to an underground Hamas base, but Sky News analysis has cast doubt on its evidence.
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0:49
Mass protests on Saturday mark 77 years since the Nakba
Separately, the Israeli military said on Sunday it had intercepted a missile launched from Yemen toward Israel.
Yemen’s Iran-aligned Houthis said they had targeted Ben Gurion Airport near Tel Aviv with two ballistic missiles.
The Houthis have fired at Israel because of the plight of Palestinians in Gaza, while Israel has carried out airstrikes in response, including one on 6 May that damaged Yemen’s main airport in Sanaa and killed several people.
The conflict began on 7 October 2023, when Hamas-led militants attacked southern Israel, killing 1,200 people and abducting 251 others.
Israel’s military response has seen the deaths of more than 53,000 people, according to the Hamas-run health ministry in Gaza, which doesn’t differentiate between civilians and combatants.
This breaking news story is being updated and more details will be published shortly.
Donald Trump has said he will speak to Vladimir Putin and Volodymyr Zelenskyy separately on Monday in a bid to secure a ceasefire deal between Russia and Ukraine.
The US president made the announcement on Truth Social – shortly after the Ukrainian president condemned Russiafor the “deliberate killing of civilians” after a drone hit a bus in north-eastern Ukraine.
Mr Trump said he will speak to Mr Putin over the phone. He will then talk with Mr Zelenskyy and “various members of NATO”, he wrote.
In an all-caps post, he said: “HOPEFULLY IT WILL BE A PRODUCTIVE DAY, A CEASEFIRE WILL TAKE PLACE, AND THIS VERY VIOLENT WAR, A WAR THAT SHOULD HAVE NEVER HAPPENED, WILL END. GOD BLESS US ALL!!!”
The Ukrainian town of Bilopillia today declared a period of mourning lasting until Monday after nine people were killed in a Russian drone attack – which occurred just hours after Kyiv and Moscow held peace talks.
Seven others were injured, Ukrainian authorities said. The bus was evacuating civilians from a frontline area when the drone hit, the country’s national police said.
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0:41
Nine killed in Russian strike on bus
A “father, mother and daughter” were among the dead, Mr Zelenskyy said, writing on Telegram: “All the deceased were civilians. And the Russians could not have failed to understand what kind of vehicle they were targeting.”
The attack has also been condemned by British Foreign Secretary David Lammy, who said he was “appalled”.
“If Putin is serious about peace, Russia must agree to a full and immediate ceasefire, as Ukraine has done,” he wrote on X.
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While the discussions – which were not attended by the Mr Putin or Mr Zelenskyy – did not result in a truce, both countries agreed to exchange 1,000 prisoners in their biggest swap yet.
Ukraine’s intelligence chief, Kyrylo Budanov, said on national television the exchange could happen as early as next week.
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1:52
What happened at Ukraine talks?
Russia ‘threatened eternal war’ at peace talks
After a Ukrainian official yesterday said Russia made “unacceptable” demands during the discussions, a source from the Kyiv delegation has now told Sky News that Moscow threatened “eternal war”.
Separately, a senior Kyiv official said Russia’s proposed ceasefire terms included the full withdrawal of troops from four regions of Ukraine: Donetsk, Zaporizhzhia, Kherson and Luhansk.
Moscow also called for international recognition that those regions and Crimea – annexed in 2014 – are Russian and for Ukraine to become a neutral state, with no allied troops stationed there, they said.
Ukraine has rallied support from its allies following the talks, and a number have spoken out.
French President Emmanuel Macron said: “Today, what do we have? Nothing. And so I tell you, faced with President Putin’s cynicism, I am sure that President Trump, mindful of the credibility of the United States, will react.”
The EU is working on a new package of sanctions against Moscow, European Commission President Ursula von der Leyen said.
Israel and Hamas said ceasefire talks have resumed in Qatar – even as Israeli forces ramped up a bombing campaign and mobilised for a massive new ground assault.
Earlier, the Israeli military said it had been “conducting extensive strikes and mobilising troops” as part of preparations to expand operations in Gaza.
Israel’s defence minister Israel Katz said Hamas had “refused to discuss negotiations without a cessation of the war”, but after the airstrikes and the mobilisation of forces the militant group’s representatives “have agreed to sit in a room and seriously discuss the deal”.
“Israel emphasises that if the talks do not progress, the [military] operation will continue,” he added.
A Hamas source told Sky News that ceasefire talks began in Doha on Saturday morning.
Image: Palestinians inspect the site of an Israeli strike on a house in Jabalia. Pic: Reuters
Image: Tents were targeted in an airstrike on Saturday at al Aqsa Hospital in Deir al Balah in central Gaza. Pic: AP
Hamas official Taher al-Nono told Reuters news agency that the two sides were involved in discussions without “pre-conditions”.
He added Hamas was “keen to exert all the effort needed” to help mediators make the negotiations a success.
More than 150 people have been killed in Israeli strikes in the last 24 hours, according to the Hamas-run health ministry in Gaza.
The Israeli military’s preparations to expand operations in Gaza have included the build-up of tanks and troops along the border.
It is part of “Operation Gideon Chariot”, which Israel says is aimed at defeating Hamas and getting its hostages back.
Image: Israeli tanks near the Israel-Gaza border on Saturday. Pic: Reuters
Image: An Israeli tank being relocated to a position near the Gaza border on Friday. Pic: AP
An Israeli defence official said earlier this month that the operation would not be launched before Donald Trump concluded his visit to the Middle East.
The US president ended his trip on Friday, with no apparent progress towards a new peace deal.
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3:27
Forensic look at Israel’s escalation
Meanwhile, on Saturday, leaders at the annual summit of the Arab League in Baghdad said they were trying to reach a ceasefire between Israel and Hamas in Gaza.
They also promised to contribute to the reconstruction of the territory once the war stops.
The meeting comes two months after Israel ended a ceasefire reached with the Hamas militant group.
Image: A man carrying the body of a child killed in Israeli airstrikes on Friday in Jabalia, northern Gaza. Pic: Reuters
Image: Parts of northern Gaza have been completely destroyed in the bombing campaign. Pic: Reuters
Israel’s Prime Minister Benjamin Netanyahu said on 5 May that Israel was planning an expanded, intensive offensive against Hamas as his security cabinet approved plans that could involve seizing Gaza and controlling aid.
This week, Israel said it had bombed the European Hospital because it was home to an underground Hamas base, but Sky News analysis has cast doubt on its evidence.
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Israel’s goal is the elimination of Hamas, which attacked southern Israel on 7 October 2023, killing around 1,200 people and seizing about 250 hostages.
Its military response has killed more than 53,000 people, according to the Hamas-run health ministry in Gaza, which does not differentiate between civilians and combatants.