With the incoming American President Donald Trump, a different wind will blow internationally in the future. With corresponding consequences also for Europe. Economists believe that Germany is simply unprepared for Trump’s presidency.
In an Ifo Institute assessment published on Wednesday, 85 percent of 180 economics professors in Germany surveyed said this. Nearly 90 percent fear that US trade policy under Trump will have a negative effect on growth.
“The German economy is strongly export-oriented and will therefore be hit particularly hard by the planned protectionist trade policy under Trump,” says Ifo expert Niklas Potrafke.
Trump wants a tariff of at least 25 percent on everything
Trump has already announced tariffs of 25 percent on imports from neighboring Canada and Mexico, and China will be hit with additional tariffs of ten percent. “This suggests he will also use tariffs as leverage against the EU,” said Christian Dustmann, economist and director of the Berlin-based Rockwool Foundation.
“For example, if we were to allow the EU to participate in the expected course against China.” This would place Germany and the European Union in an unpleasant dilemma.
Stronger US growth is expected
More than 40 percent of participants in the Ifo survey expect that Trump will ensure stronger American growth. However, eleven percent of economists see very negative consequences for economic growth in Germany; this share amounts to 20 percent. The US is by far the largest buyer of goods ‘Made in Germany’: almost ten percent of the export turnover of German industry comes from American companies.
In addition to the effects on economic growth, the experts were asked about the consequences for individual areas of international cooperation. “Here too, the picture was extremely pessimistic,” said the Ifo Institute.
More than 90 percent of participants expect that the conditions for measures against climate change, in trade policy and in cooperation in international organizations will deteriorate with the election of Trump.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
