The tariff agreement between the European Union and the United States represents a significant burden for parts of the German economy, a top economist said on Monday.
Tariffs of 15% are an “enormous burden for the economy, not only here but also in the US,” Ulrike Malmendier, a member of the German Council of Economic Experts, said on public broadcaster ARD. In previous years and decades, a rate of approximately 1% had applied, she noted. “In comparison, this is already a drama.”
Malmendier, who teaches in California, said that the impact could be significant, especially for individual companies and sectors. However, she noted that it is difficult to assess what the new levy means for the overall economy.
Possible positive effects for consumers
Many countries have poorer access to the US market due to the tariffs and must offer their goods elsewhere, such as in the EU, according to Malmendier. This could even have a positive effect on inflation domestically, she said.
The EU and US had agreed on a deal in the long-simmering tariff dispute on Sunday. It provides for a tariff rate of 15% for the majority of imports from the 27-nation bloc. In addition, there are agreements on investments and energy imports.