The recent trade agreement between the EU and the USA has sparked significant debate, particularly due to the imposition of a 15% tariff on European exports to the US. While this agreement spares certain sectors like steel, aluminum, and pharmaceuticals, it is widely viewed as a burden on the broader German economy, with potential declines in exports by up to a quarter. Notably, the aerospace industry benefits from an exemption, easing pressures on companies like Airbus.
German automakers face challenges, as the higher tariffs could initially hinder exports. However, some see a silver lining, suggesting it could spur innovation and reinforce the 'Made in Germany' brand by encouraging the production of more efficient vehicles. Meanwhile, concerns linger over potential job losses, with predictions of up to 70,000 positions at risk.
The deal's implications extend beyond Germany. Countries like Poland anticipate economic setbacks, while the pharmaceutical sector warns of adverse effects on patients due to increased medication costs. Despite these challenges, some EU leaders perceive potential trade stability benefits, although critics argue the deal compromises EU sovereignty and favors US digital services. As the economic landscape adjusts, the true impact of these tariffs will unfold over time.
