US tariffs could cost Germany 290 bln euros report

Berlin: UStariffs could slash Germany s economic output by as much as 290 billion euros (330 billion USdollars) over four years, the German Economic I...

Berlin: US tariffs could slash Germany's economic output by as much as 290 billion euros (330 billion US dollars) over four years, the German Economic Institute (IW) has warned, projecting an annual GDP loss of 1.6 percent for Europe's largest economy by 2028.

The report analyzes the potential fallout from the "reciprocal tariffs" announced by U.S. President Donald Trump on April 2, which would impose an additional 20 percent duty on imports from the European Union (EU), among other trading partners, citing large trade deficits.

According to the IW, Germany's direct losses from these measures could reach 200 billion euros, or 1.2 percent of GDP annually by 2028. With retaliatory responses factored in, total damages may rise to 290 billion euros.

The EU as a whole could face cumulative losses of up to 1.1 trillion euros by 2028, the report estimated.

"Donald Trump is instigating a global trade war that will hurt everyone," the IW warned, adding that despite a 90-day suspension of the tariffs, the resulting uncertainty has already severely impacted global investment planning.