Trump's tariffs threaten Germany's economy

Donald Trump, the President-elect, is known for his protectionist economic policies. His announcements about reinstating punitive tariffs on products imported from Germany are causing significant concern. Europe, led by Germany, is confronting the economic consequences of these actions.

The Grantham Research Institute on Climate Change and the Environment has published a study showing how Trump’s tariffs could impact European economies, particularly Germany's.

The predicted decline in Germany's GDP could be twice as large as the European average. While Germany attempts to overcome economic stagnation, these measures could further exacerbate difficulties.

The automotive sector, a key component of the German economy, would be among the most affected by Trump’s tariffs.

According to analyses, German car factories supply the American market with about 12% of their total exports, making the U.S. the largest trading partner for this sector.

The potential increase in tariff rates would force manufacturers to explore alternative solutions to maintain their competitiveness.

Europe’s concerns about potential Trump tariffs aren't confined to the automotive industry. EU politicians and bankers are assessing the effects of such policies on the entire economy of the Old Continent. A contingency plan prepared in Brussels includes swift and decisive retaliatory actions. European leaders understand that only cooperation and a coordinated response can prevent a potential wave of economic unrest.

Economists stress that to avoid a long-term spiral of mutual sanctions, it's crucial to prevent panic reactions and engage in dialogue with the new U.S. administration should Trump take office again. While the European Union prepares for confrontation, exporters from Germany and other member countries are compelled to adjust their business strategies.