Trump announces Zölle: What does that mean for Germany's economy?

Trump announces Zölle: What does that mean for Germany's economy?

Herford, Deutschland - Donald Trump, the designated US president, has made it clear that he is ready to increase the import tariffs on goods from Mexico, Canada and China. In an interview with NBC, he explained that this could lead to a price increase for US consumers. "I can't guarantee anything," he said, but his enthusiasm for tariffs is out of the question. He described tariffs as "the most beautiful word" and plans to raise up to 25 percent tariffs on imports from these countries in order to remove trade weights that he perceives as unfair. Trump particularly complains that the United States would be "subsidized" by these countries, while illegal migration and drug problems are also on the agenda, such as ZDF note.

The tariffs could not only burden the US economy, but also have far-reaching effects on international trade. If 10 percent tariffs occur to European goods, a decline in German exports to the United States is forecast by around 15 percent. This enables small customs adjustments to drive the already stagnating German economy into a recession. In addition, it is feared that China and other export countries could take advantage of the situation and increasingly focus on Europe, which could heat inflation in the euro area, while a strengthened dollar could drive potential import costs.