Sigmar Gabriel warns: Trump's tariffs endanger Lippe's exports!

Sigmar Gabriel warns: Trump's tariffs endanger Lippe's exports!

At an insightful event in Detmold, Sigmar Gabriel, the former chairman of the SPD, spoke about the explosive topics of business and education. At his side was Ilka Kottmann, the SPD district council candidate. Gabriel emphasized the dependence of many Lippe companies on exports as well as the unsettling role of US punitive tariffs, which not only slow down innovation but also investment in the Lippe district.

The audience also raised various other topics, including the global economic situation and the political situation in the USA, which could have far-reaching effects on the German economy.

Trump and his impact on the economy

The 2025 US presidential election ended with a clear victory for Donald Trump, who was in office from 2017 to 2020. This situation could usher in a phase of uncertainty in trade with the USA for both Germany and the EU deutschlandfunk.de reported. The challenges facing the U.S. economy are also influencing voter sentiment and have led to discontent over high food prices, a lack of housing and rising health care costs.

Trump raised the issue of inflation during the election campaign to criticize the Biden administration. Experts like David Kohl see the threat of tariffs as a possible negotiating strategy, but one that poses significant risks for German companies. Trump's announcements that he is going against the world trade order and introducing flat-rate import tariffs of between 10-20% could make access to the US market significantly more difficult for German export goods, which often have a unique selling point.

The reactions of the markets

Financial markets showed a positive reaction to Trump's return to the White House. Yields, the dollar and Bitcoin rose, while European stock exchanges also showed positive momentum. However, this development is accompanied by concerns that German companies could suffer from a new protectionist US trade policy, which is already causing uncertainty.

According to estimates, Trump's announced tariffs could affect US GDP by around 1.4%. Trump also plans to reduce corporate taxes from 21% to 15%. The challenges posed by high import tariffs on Chinese products could also have an indirect impact on the German market, as China may then focus more on the European market.

In response to the potential economic risks, Michael Hüther recommends that German companies review their trade relations with the USA and possibly set up production facilities there. In addition, Europe must strengthen its internal market and implement the Capital Markets Union in order to better meet the challenges of the Trump administration.

Finally, it should be noted that the coming years could be decisive for the economic relations between Germany and the USA. Sigmar Gabriel's warnings about the consequences of Trump's policies highlight the need for Lippe companies to prepare for a possible new reality in international trade.