German industry is expressing concern over the potential negative consequences of the recent US decision to increase tariffs on imports of goods from China. The Federation of German Industries (BDI) and the German Institute for Economic Research (IfW) have released their analyses and concerns regarding this measure.
The BDI fears that China could shift excess production of goods that are subject to US tariffs to the European market. This could lead to a surplus of goods and downward pressure on prices in the EU. The BDI is calling on the German government and the EU to take steps to protect their markets from dumping.
The IfW found in its simulations that the direct impact of the new US tariffs on trade between the EU and China is small. The low volume of electric vehicle imports from China to the US means that redirection to other markets will have a negligible impact. However, the IfW warns that this measure could escalate trade tensions and lead to retaliatory measures from China, which could have much more serious consequences for the global economy.
Key Points:
- US tariff increases on Chinese goods could have a negative impact on the German economy.
- China could shift excess production to the European market, putting downward pressure on prices.
- The direct impact of the new tariffs on EU-China trade is small, but there is a risk of escalating trade tensions.
- Germany and the EU should take steps to protect their markets from dumping.
Sources:
- TASR: https://www.tasr.sk/
- DPA: https://www.dpa.com/en
