US tariffs threaten 90,000 jobs in Germany – act now!

US tariffs threaten 90,000 jobs in Germany – act now!

The USA's plans to introduce high tariffs on imported products from the European Union could have serious effects on the German economy. Industry experts estimate that around 90,000 jobs in Germany are threatened by these customs measures. The Bundesbank points out that the country is heading for a year of zero economic growth for the third year in a row, with the recession appearing to be overcome but stagnation ahead. Andrea Nahles, CEO of the Federal Employment Agency, warns urgently about the massive threats that US tariffs could pose for German jobs, especially in industry.

However, German industry is resilient, with a slight increase in new manufacturing orders in April. There are also positive signals on the labor market: in May there were more job registrations than layoff announcements, and the workforce barometer rose for the second time in a row. Despite the impending tariff increases, the federal government is planning an immediate program with tax relief and depreciation options, which is to be introduced to the Federal Council before the summer.

Background to the tariff increases

U.S. tariffs on European steel and aluminum products could rise to 50 percent from the current 25 percent, while a base 10 percent tariff on other products could rise to 20 percent in July. In response, the EU has prepared countermeasures by increasing tariffs on US steel imports from 25 to 50 percent, but is pausing these for the time being as a sign of goodwill. The deadline for negotiations between the EU and the USA is July 9th.

The tariffs could also have a negative impact on the trade balance between Germany and the USA. In 2023, Germany exported land vehicles worth 34 billion euros to the USA, while only goods worth 8 billion euros were imported from the USA. The German auto industry is particularly concerned about the tariff threats as it could be severely affected. According to reports, the introduction of a high tariff could cost the EU hundreds of billions of euros annually, which would place a significant burden on Europe's export economy.

Economic impact

The Kiel Institute for the World Economy estimates that the EU's GDP could fall by around 0.5 percent if the US tariffs actually come into force. This could not only put a strain on trade relations between Europe and the USA, but also place a heavy burden on the economies of developing and emerging countries. It is unclear whether the announced tariffs will actually be implemented or merely serve as a negotiating tactic.

According to current analyses, the USA is most affected by the negative effects of tariffs because it is the most interconnected economy. These developments continue to be closely monitored as US imports in 2023 amounted to $3,100 billion of goods, while exports were only $2,000 billion. In this context, the EU in particular is called upon to stabilize its own economy and mitigate the effects of tariff increases.

For further information on the background and possible consequences of the tariff increases, please visit fr.de and tagesschau.de.