“If President-elect Trump makes good on his threats and imposes a 10 percent tariff on imports from all trading partners and a 60 percent tariff on Chinese imports, this would hit the export-oriented German economy hard,” Hüther continued. According to Hüther, countermeasures by the EU would even have a destructive affect on financial efficiency.
“The USA has been Germany’s most important trading partner for nine years. Filling this gap with domestic and European consumption from the internal market will be almost impossible,” mentioned Hüther. Tariff will increase would notably hit export-intensive sectors equivalent to mechanical engineering, the automotive and pharmaceutical industries, as they’d above-average export quotas to the USA.
At the identical time, competitiveness could be weakened, added Hüther. “Tariffs increase the cost of imported products in the United States, reducing their competitiveness compared to domestic products,” he mentioned. “The already weak German economy would suffer considerably.”
The Republican Trump introduced vital tariff will increase for overseas items through the election marketing campaign.
https://www.faz.net/aktuell/wirtschaft/iw-chef-us-strafzoelle-wuerden-deutsche-wirtschaft-hart-treffen-110101662.html