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Trump's Election: A Major Blow for Germany's Economy?
A potential Trump presidency could severely damage the German economy due to its heavy reliance on US exports and the threat of significant tariffs.
English
United States
PoliticsInternational RelationsEconomyUs PoliticsGermany TradeTariffs
Kiel Institute For The World EconomyIfo InstituteDestatisS&P GlobalHamburg Commercial Bank
Olaf ScholzDonald TrumpMoritz SchularickLisandra Flach
- How could Trump's potential trade policies affect Germany's economy?
- Trump's potential tariffs could severely impact German exports, particularly in the auto and chemical sectors, potentially leading to a €33 billion economic loss.
- What is the significance of the US as a trading partner for Germany?
- The US has become Germany's second-largest trading partner, with around 9.9% of German exports heading there in 2023; this makes it particularly vulnerable to US trade policies.
- What was the state of the German economy before Trump's potential election?
- Germany's economy narrowly avoided a recession in Q3 2024, but a Trump presidency poses significant challenges due to its reliance on exports and the potential for increased US tariffs.
- What are the predictions of economic institutes regarding the impact of Trump's policies?
- The ifo Institute and other experts predict substantial damage to the German economy if Trump implements broad tariffs on imports, highlighting the need for proactive measures from Germany and the EU.
- What are the concerns of experts regarding the combined effects of domestic and international factors?
- Moritz Schularick of the Kiel Institute warned that Trump's election could mark the start of the most difficult economic period in Germany's history due to structural problems combined with new external challenges.