What is the right course of action in this situation?

In Germany, when you approach a tram that has stopped at a tram stop within the roadway (not separated from traffic), you must remain behind the tram. This rule is in place to protect passengers getting on or off, as they may cross in front of or behind the tram. You are not allowed to overtake the tram, either on the right or on the left, in these situations, because it creates serious risks for pedestrians. Only after the doors are closed and the tram moves again can you carefully pass. Your choice is correct because it prioritizes passenger safety according to German traffic law (§ 20 StVO). Remember, whenever you see a tram stopping for passengers, always be prepared to stop and wait behind it.