The German Chamber of Industry and Commerce (DIHK) is warning that the tightened US trade policy is already having an adverse impact on the German economy, reported dpa.
"The burdens are likely to become even more severe in the coming weeks," DIHK foreign trade chief Volker Treier told dpa in Berlin on Friday.
Treier said the slump in exports to the US since the announcement of new US tariffs at the beginning of April was a clear warning signal. "If the uncertainty surrounding US tariff policy continues, German industry could face monthly export losses of up to €1 billion."
Industries that are directly or indirectly affected by the 50% tariffs on steel and aluminium – including the key automotive industry – are particularly vulnerable, he said. "The measure has a profound impact on industrial supply chains for mechanical engineering, furniture manufacturers, producers of fitness equipment and tools."
The EU is currently trying to prevent a further escalation in the tariff dispute between the two trading powers.
Around two weeks ago, US President Donald Trump announced that he intends to introduce tariffs of 30% from August 1.
A "basic tariff" of 10% has been in place for EU imports since April 9. According to the DIHK, a sectoral tariff of 25% has been in place on steel and aluminium products since March 12, which was increased to 50% on June 4.
Further tariffs of 25% have been in place on cars since April 3 and on selected car components since May 3.
"If tariffs of 30% are permanently imposed on German industrial products competitiveness in the US market will be almost impossible to maintain," Treier said.
- Germany
- Businesses
- Warn US trade policy
Source: www.dailyfinland.fi
