gr.euronews.com
US Tariffs Pose Greatest Threat to German and Irish Economies
Germany and Ireland face the highest risk from potential US tariffs, with Germany's automotive sector and Ireland's pharmaceutical exports particularly vulnerable, potentially leading to significant GDP losses and job reductions; the EU as a whole faces a potential 0.3% GDP loss based on current projections, but this is expected to be offset by projected 1.1% GDP growth in 2025.
- What are the most significant immediate economic impacts of potential US tariffs on Germany and Ireland?
- Germany and Ireland are the two EU economies most vulnerable to higher US tariffs, facing potential losses of 0.4% and 3-4% of GDP respectively, according to Bruegel and BCA Research. A 25% tariff on cars already impacts Germany significantly, while potential 200% tariffs on pharmaceuticals could severely affect Ireland, whose pharmaceutical exports represent nearly 55% of its total exports to the US.
- What are the long-term implications of US tariffs on the pharmaceutical sector, including the potential impact on jobs and investment in the EU?
- The potential 200% tariff on pharmaceuticals, while unlikely due to its impact on US healthcare costs, serves as a negotiating tactic. This pressure could lead to increased pharmaceutical production within the US, shifting manufacturing and potentially affecting employment in EU countries like Ireland and others. The longer-term impacts on investment and job creation remain uncertain.
- How does the reliance of EU countries on US exports, particularly in the automotive and pharmaceutical sectors, influence the impact of US tariffs?
- The impact of US tariffs on the EU economy will be unevenly distributed, with countries heavily reliant on US exports facing the greatest risk. Germany's export-oriented economy, particularly its automotive sector (22.7% of total exports to the US), is highly vulnerable. Ireland's dependence on the US market (53.7% of goods exports) and its pharmaceutical sector makes it especially susceptible.
Cognitive Concepts
Framing Bias
The article frames the issue largely from the perspective of the potential negative impacts on European economies, particularly highlighting the vulnerability of Germany and Ireland. While this is a valid perspective, a more balanced approach would also include perspectives from the US side, addressing their motivations for imposing tariffs and their potential economic benefits.
Language Bias
The language used is generally neutral and objective, employing factual reporting and quotes from experts. However, phrases such as "threatened by higher US tariffs" and "a major blow" may subtly frame the situation more negatively than a purely neutral description would.
Bias by Omission
The article focuses primarily on the economic impact of potential US tariffs on EU countries, particularly Germany and Ireland. While it mentions other countries, a more in-depth analysis of their potential vulnerability would provide a more complete picture. The article also doesn't delve into potential mitigating strategies the EU might employ.
False Dichotomy
The article presents a somewhat simplified view of the situation, focusing mainly on the negative economic consequences of tariffs without fully exploring potential benefits or alternative scenarios. For instance, it doesn't discuss the possibility of the EU negotiating favorable trade terms or the potential for increased domestic production in response to tariffs.
Sustainable Development Goals
The article highlights that potential US tariffs on European goods, particularly in the automotive and pharmaceutical sectors, could significantly harm the economies of several EU countries, leading to job losses and reduced economic growth. Germany and Ireland are identified as particularly vulnerable. The potential impact on GDP growth is explicitly discussed, along with the potential loss of jobs due to reduced exports and investment.