US tariffs on EU could cost Germany €200B by end of 2028

The possible imposition of 50% import duties by the US on products from the EU could cost Germany around 200 billion euros by the end of 2028, the German Economic Institute (IW) said, Report informs.

According to IW estimates, if 50% tariffs on EU products remain in place until the end of Donald Trump’s presidential term, this will cost the German economy around 200 billion euros by the end of 2028. As a result of the introduction of such tariffs, Germany’s GDP will fall by around 0.1% this year, and the damage will be significantly greater thereafter. On average, GDP between 2025 and 2028 will be 1.1% lower than in a scenario without tariff increases. If the EU responds with appropriate retaliatory tariffs, there is a risk of losses of 250 billion euros by 2028.

As IW notes, the imposition of tariffs by the US will also hurt itself. The United States imports some types of products almost exclusively from Germany, such as truck cranes. In 2024, the United States imported about 95% of such cranes from Germany, worth about $850 million.