Introduction
US President Donald Trump has announced that starting August 1, 2025, a tariff of 30 percent will be imposed on imports from the European Union. This measure affects a variety of EU products, as well as imports from Mexico. Additionally, a tariff of 50 percent will be imposed on copper imports into the USA.
Impact on the German Economy
Increased Costs for Imports
German companies that are heavily dependent on exports to the USA or import raw materials and semi-finished products from the EU are facing higher costs due to these tariffs. This situation could lead to an increase in product prices.
Market Prices and Inflation
The new tariffs could affect market prices and lead to a rise in inflation in Germany and Europe.
Company Profits and Investors
Companies with a high export share to the USA could experience margin pressure. A price increase on the US side could weaken demand or reduce company profits. Investors should closely monitor these developments. Industries such as automotive, machinery, or chemicals are particularly affected.
Reaction of the European Union
So far, the European Union has not taken immediate countermeasures, but plans to impose counter-tariffs on US products by early August to gain time for negotiations. A negotiation paper regulating volume limitations for certain imported goods such as cars is already in draft.
Overall, increased uncertainty is expected in the near future, where German investors should carefully weigh both opportunities and risks, particularly regarding the benefits and disadvantages of company profits from rising costs as well as possible countermeasures from the EU.