Trump tariffs threaten European economies, Germany hit hardest

Donald Trump, the President-elect, is known for his protectionist economic policy. His announcements regarding the reintroduction of punitive tariffs on products imported from Germany are causing significant concerns. Europe, led by Germany, is facing the economic consequences of these actions.

The Grantham Research Institute on Climate Change and the Environment has published a study showing how the introduction of tariffs by Trump could affect European economies, especially the German one.

The predicted decline in Germany's GDP could be twice as large as the European average. While Germany is trying to overcome economic stagnation, such actions could further deepen difficulties.

The automotive sector, a key element of the German economy, would be one of the most affected by Trump's tariffs.

According to analyses, German car factories supply the American market with up to about 12% of total exports, making the U.S. the largest trading partner for this sector.

The potential increase in tariff rates would force manufacturers to seek alternative solutions to maintain competitiveness.

Europe's concerns about potential Trump tariffs are not limited to the automotive industry. EU politicians and bankers are analyzing the effects of such policies on the entire Old Continent economy. A contingency plan prepared in Brussels includes swift and decisive retaliatory actions. European leaders are aware that only cooperation and a coordinated response can prevent a potential wave of economic unrest.

Economists emphasize that to avoid a long-term spiral of mutual sanctions, it is essential to avoid panic reactions and seek dialogue with the new U.S. administration if Trump takes office again. While the European Union prepares for confrontation, exporters from Germany and other member countries must re-model their business strategies.