US Fines - Ifo-Institut Warns Against Drastic Export Decline of German Companies - "up to 60 Billion Euros Damage"

The Munich-based economic research institute ifo is afraid of a sharp fall in German export activity due to the punitive tariffs threatened by the US against the EU. Should this really happen, it would be unprofitable for many companies to deliver further to the United States, said ifo President Fuest of the "Bild" newspaper. Of the local exports, a good tenth is currently going to the United States.

It is not the Europeans who stand to be the biggest losers if the United States imposes the significant tariffs on European goods that Donald Trump announced on Friday.

If the US President follows through on his announcement, things will be tough for Germany. Top economist Felbermayr explains what that would mean for exports.

The Federal Association of Wholesale and Foreign Trade (BGA) fears “enormous effects” on German exports due to high US punitive tariffs. “Higher tariffs must be passed on to customers as price increases,” BGA President Dirk Jandura told the newspapers of the Funke media group (Saturday issues). German goods would become more expensive and therefore lose competitiveness. Pharmaceutical products, vehicles and vehicle parts, machinery, medical tech…