With the re-election of former President Donald Trump to the White House and the collapse of German Chancellor Olaf Scholz's coalition government, Germany is bracing for questionable times both economically and politically.
Throughout his campaign, President Trump promised to raise tariffs on imports, whether friend or foe, under the Trump Reciprocal Trade Act, which would match all U.S. tariffs with taxes imposed by corresponding countries.
“If India, China or any other country were to impose a 100 percent or 200 percent tariff on American goods, we would impose the exact same tariff on those countries,” he outlined in his campaign agenda. “If they charge America, we charge them the exact same amount, an eye for an eye and a tariff for a tariff.”
Former President Donald Trump speaks to a crowd at a rally at the Dodge County Airport on Sunday, October 6, 2024, in Juneau, Wisconsin. (Giovany Hernandez/Milwaukee Journal Sentinel/USA TODAY NETWORK via Imagn Images)
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However, the president-elect has also suggested that imports from all countries should be subject to a 10% tariff and imports from China should be subject to a 60% tariff, so these specific tariffs remain unclear. It is unclear whether the government intends to push for the increase. According to a report from Reuters.
It's not just China that President Trump has his sights set on, but the president-elect has also mentioned it. European Union (EU) as “Mini China” and warned that Brock would have to pay restitution.
“They're not going to take our cars. They're not going to take our produce. They're selling millions of cars in America,” he told supporters at an October rally in Pennsylvania. Ta. “No, no, no. They will have to pay a heavy price.”
Some economic experts have warned that tariffs will increase. The company that imports the productNot by government agencies and could lead to increased costs around the world, including in the United States. Not just more inflation.
A report from the German Marshall Fund (GMF) earlier this month pointed to a study by the German Institute for Economic Research in Cologne that estimated the promised Trump tariffs would cost the country approximately. $127 billion over the next four years.
German Chancellor Olaf Scholz leaves Bellevue Palace in Berlin on Thursday, November 7, 2024. (AP Photo/Ebrahim Norouzi)
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“Trump's victory does not bode well for Germany, which relies on U.S. security and thrives on open markets.” GMF stated in its report: How the US election will affect Germany. “And uncertainty for Europe's largest economy is not ideal if the EU needs to find a place in a world where the US president is not expected to uphold the traditional, rules-based international order.”
But it's not just Germany's struggling economy that could cast uncertainty on Berlin's international standing. Scholz is facing a no-confidence vote in January after he sacked Finance Minister Christian Lindner and the coalition government collapsed.
A vote of confidence is scheduled to be held in Germany on December 16, but Scholz is expected to lose given his minority position.
European Commission President Ursula von der Leyen speaks during a debate at the European Parliament in Strasbourg, eastern France, on January 17, 2024. (Frédéric Florin/AFP via Getty Images)
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The most likely next step would be for German President Frank-Walter Steinmeier to dissolve parliament and call an election not scheduled for February 23, 2025.
The EU is currently staring down a potential trade war with the Trump administration, but while Berlin waits to see who will lead the country next, one of the EU's major powers is facing a real challenge both geopolitically and economically. will be sitting as a lame duck.
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German opposition leader Friedrich Merz, who could become Germany's next chancellor, said he intends to terminate the agreement with President Trump.
“In Germany we have not been able to make our interests clear enough and enforce them, and that has to change,” Merz said in an interview with Stern magazine.
According to an interview with Bloomberg, Mertz said, “The United States is going even more aggressive. It shouldn't end with only one side benefiting, but rather we need to make adjustments that are good for both sides.'' “Mr. Trump would call it a deal.”
