Study indicates Trump’s tariff threat possibly to cost Germany USD215 billion
(MENAFN) Germany could suffer economic losses of up to €200 billion by the end of 2028 if former U.S. President Donald Trump’s proposed 50% tariffs on EU goods are implemented and maintained throughout his potential second term, according to a study released Friday by the German Economic Institute (IW).
The United States is currently Germany’s largest trading partner, with bilateral trade reaching €253 billion ($287 billion) in 2024. In the first quarter of 2025, Germany recorded a €17.7 billion trade surplus with the U.S., the largest among all its trading partners. German exports to the U.S. exceeded imports by nearly 75%, according to data from the Federal Statistical Office.
The IW study predicts that from 2025 to 2028, Germany’s economic output would drop by an average of 1.1% annually due to the proposed tariffs. If the EU responds with reciprocal tariffs, total economic damage could climb to €250 billion.
Trump, writing on Truth Social, criticized the EU for being designed to exploit the U.S. economically, accusing the bloc of unfair taxes, regulations, and lawsuits that contribute to what he described as an “unacceptable” $240 billion trade deficit. He announced his intention to impose a 50% tariff on all EU imports starting June 1, 2025, citing stalled negotiations.
U.S. Treasury Secretary Scott Bessent backed the move in a Fox News interview, stating that the EU's trade proposals are not on par with those from other global partners and that this tariff announcement should act as a wake-up call.
In response, EU Trade Commissioner Maros Sefcovic emphasized on social media that the EU seeks a trade relationship based on mutual respect and cooperation, but is prepared to protect its economic interests if necessary.
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