Introduction
US President Donald Trump has announced a 30 percent tariff on imports from the European Union starting August 1, 2025. This measure affects a variety of EU products, as well as imports from Mexico. Additionally, a 50 percent tariff will be levied on copper imports into the USA.
Impacts on the German Economy
Increased Costs for Imports
German companies that are heavily dependent on exports to the USA or import raw materials and intermediate products from the EU face higher costs due to these tariffs. This situation could lead to an increase in product prices.
Market Prices and Inflation
The new tariffs could impact market prices and lead to an increase in inflation in Germany and Europe.
Corporate Profits and Investors
Companies with a high export share to the USA may come under margin pressure. A price increase on the US side could weaken demand or reduce corporate profits. Investors should closely monitor these developments. Industries such as the automotive sector, mechanical engineering, or chemicals are particularly affected.
Reaction of the European Union
The European Union has not yet taken any immediate countermeasures but plans to impose counter-tariffs on US products by early August to allow time for negotiations. A negotiation paper regulating volume limits for certain imported goods such as cars is already in draft.
Overall, increased uncertainty can be expected in the near future, where German investors should carefully weigh both opportunities and risks, especially concerning the advantages and disadvantages of corporate profits due to rising costs and possible countermeasures from the EU.