The re-election of Donald Trump as President of the United States has sparked significant concern within the German economic community. Experts fear that his protectionist approach, characterized by higher tariffs and trade barriers, could severely impact Germany's economy. The US, being Germany's largest market outside the EU, could pose new challenges if Trump enacts his proposed tariffs of 20% on EU imports and up to 60% on Chinese imports.
Particularly vulnerable is the German automotive industry, already under pressure, which faces potential tariffs unless production is shifted to the US. Such moves could force European companies to reconsider their manufacturing strategies, pushing them to establish operations within America to avoid hefty duties.
Economists warn that Trump's "America First" policy might deepen global trade conflicts, leading to substantial economic setbacks for Germany. The Deutsche Industrie- und Handelskammer (DIHK) and the Außenhandelsverband BGA have expressed their concerns over the potential downturn in transatlantic trade relations.
This development comes at a precarious time, as Germany grapples with internal economic recovery. The Kiel Institute for the World Economy (IfW) has described the situation as potentially the most challenging economic period in the history of the Federal Republic. The combination of internal economic struggles with new international trade hurdles poses a significant threat to Germany's economic stability.
The election result serves as a wake-up call for Germany and Europe to expedite efforts to bolster their competitiveness. As US markets anticipate benefits from tax cuts and deregulation, Germany must navigate these turbulent waters with strategic agility, focusing on strengthening its domestic market to withstand external pressures.
