Trump auto tariff hike could cost Germany nearly $18 billion in output, institute says
IfW said the tariff increase could cut German output by nearly €15 billion, with longer-term losses reaching €30 billion.
- On Friday, President Donald Trump announced plans to increase auto tariffs on the European Union from 15 percent to 25 percent next week, citing the bloc's non-compliance with trade agreements with Washington.
- The Kiel Institute for the World Economy reported Saturday that the tariff hike could cost Germany nearly 15 billion euros in output, highlighting the exposure of the EU's largest economy to U.S. import tariffs.
- "The effects would be substantial," IfW President Moritz Schularick said, with long-term losses rising to around 30 billion euros, while Italy, Slovakia, and Sweden also face significant automotive sector losses.
- Jens Suedekum, the German finance minister's chief adviser, told Reuters the European Union should "simply wait and see for now," noting Trump is known to impulsively withdraw tariff threats.
- With Germany's already sluggish growth rate expected at 0.8 percent this year, IfW economist Julian Hinz warned the tariffs would "hit hard," while Suedekum questioned whether legal basis exists for the threat.
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24 Articles
The additions announced by President Donald Trump could further exacerbate the pressure on the industry to save – especially for two manufacturers.
Donald Trump announced on Friday, May 1, the increase in tariffs for products exported from the European Union to the United States. These new tariffs could cost Germany a lot. It must be said that Friedrich Merz and Donald Trump recently had an altercation about the war with Iran.
Trump auto tariff hike could cost Germany nearly $18 billion in output, institute says
The tariff hike on cars and trucks from the European Union announced by U.S. President Donald Trump could cost Germany nearly 15 billion euros ($17.58 billion) in output, an economic institute told Reuters on Saturday.
The increase in tariffs on cars and trucks imported from the European Union announced by US President Donald Trump could cost Germany almost 15 billion
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