Germany Faces Economic Turmoil Amid Potential Trade Wars
Germany could suffer economically if tariffs are imposed by a potential Trump administration, as its industrial strength becomes a vulnerability. A study suggests German GDP could fall by up to 1.5% due to retaliatory trade measures with the U.S., while exports could significantly decrease.
Germany is bracing for economic challenges as potential tariffs loom under a Trump-led U.S. administration. A study by the German economic institute IW highlights that such a trade conflict could lead to a GDP slump of up to 1.5% if Europe retaliates with similar tariffs.
The U.S., having surpassed China as Germany's largest trading partner, could impose tariffs of 60% on Chinese goods and around 20% on others, severely impacting German exports. This, according to the Ifo study, could result in a 14.9% drop in exports to the U.S. and serious declines in the car and pharmaceutical sectors.
Experts warn that Germany's reliance on exports is under threat, with industrial production already suffering a downturn. Economic uncertainties could lead to reduced investment and consumer spending, and Germany may struggle to recover if global tensions continue to rise.
(With inputs from agencies.)
ALSO READ
Escalating Conflict in Lebanon Threatens Economic Collapse: UNDP Warns of Severe GDP Decline and Rising Unemployment
EU Hits LinkedIn with Massive Fine for GDPR Breach
Asia-Pacific Region Faces Massive GDP Loss Due to Climate Change by 2070
Germany's GDP Defies Recession Worries with Unexpected Growth
India's GDP Growth: Balancing Inflation and Investment for a 7% FY25