Trump's Proposed High Tariffs Could Backfire Economically, Experts Say

Economists warn of global trade conflicts and domestic inflation as Trump signals steep tariff increases on imports from Europe, China, and North America.

• President Donald Trump has proposed raising tariffs on imports from Europe to 10-20%, with even higher rates of up to 60% on goods from China.
• Economists caution that these measures could lead to significant trade conflicts, potentially costing Germany up to 1% of its GDP and threatening hundreds of thousands of jobs.
• Simone Menne, President of AmCham Germany, advises against panic, noting that many of Trump's past trade threats were not fully implemented.
• Menne and other experts argue that high tariffs could harm the U.S. economy by increasing consumer prices, fueling inflation, and making American exports less competitive.
• While some German companies might gain short-term advantages if competitors face higher tariffs, large-scale relocations of German businesses to the U.S. are considered unlikely due to high costs and long planning timelines.

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