Germany predicted damage of 200 billion euros due to US duties by 2028

If US President Donald Trump imposes 50 percent tariffs on Germany, the German economy will suffer damage of 200 billion euros by the end of 2028. This was confirmed on May 24 by data from the Institute of German Economics (IW).

"If the Trump administration applies tariffs of 50% on EU products, it will cost the German economy about 200 billion euros by the end of 2028," the publication says.

It is noted that German GDP will decrease by 0.1% this year, and therefore losses may be significantly higher. So, for the average period from 2025 to 2028, production volume will be 1.1% lower than without the introduction of new tariffs.

At the same time, if the European Union (EU) responds with retaliatory measures, it is likely that the costs for the German side will increase by €250 billion by 2028.

The article also clarifies that such an initiative by the United States will harm the country due to the fact that America imports some goods exclusively from Germany, for example, cranes, which are an alternative product.

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The day before, Trump said that it was very difficult to trade with the EU, and therefore he recommended that trade duties of 50% be imposed on the union countries from June 1. According to him, difficulties arise due to powerful trade barriers, value added tax (VAT), unjustified lawsuits against American companies and other reasons.