Trump, tariffs and the earthquake for the EU: This is what Germany will be like in 2025!

Trump, tariffs and the earthquake for the EU: This is what Germany will be like in 2025!

The upcoming US presidential election could shake up the transatlantic trade structure! Donald Trump has threatened to introduce massive tariff increases if re-elected - with targeted measures against the EU. That would literally be an escalation of the trade wars! The EU plans to strike back with its own retaliatory tariffs to cushion the impending shock.

Based on a comprehensive study, the potential of a second Trump term from 2025 to 2028 is examined. Two scenarios show the frightening effects: In the first scenario, US tariffs would rise to 10 percent, while the EU would respond with a 10 percent retaliatory tariff. In the second scenario, tariffs even rise to 20 percent! That would bring the US economy to its knees with a loss of 1.3 to 1.5 percent of GDP as early as 2025 - absolute horror for the American economy!

Shocking losses for the EU

But the hammer is yet to come: the negative effects for the EU-27 and Germany would be devastating! While the USA could slowly stabilize, Europe and especially Germany are suffering from a permanent decline in GDP. In the worst case, Germany could lose up to 180 billion euros between 2025 and 2028. A real nightmare, especially since two thirds of these losses result from a dramatic decline in private investment!

Global attitudes towards trade are changing rapidly, and the EU and Germany must respond. Given these geopolitical tensions, retaliatory measures become essential. If the EU acts decisively and imposes equivalent tariffs, the negative effect on the US economy will be noticeable - which clearly shows that the EU can certainly act as a bloc. Once again, smart and assertive trade policy could make the difference!