The US President, Donald Trump, has announced plans to impose a 25% tariff on steel and aluminum imports, regardless of their origin. The details of the tariff regime and the exact date of its implementation are yet to be announced.
Trump has also threatened to impose retaliatory tariffs on countries that impose tariffs on US exports. “It’s simple: if they charge us, we’ll charge them” the President stated. According to Trump, the tariffs will take effect “almost immediately.”
The European Union has responded to the announcement, but has chosen to wait for concrete information before making a statement.
The German Industry Association (BDI) had previously predicted a 0.1% decline in economic growth for the year, assuming Trump’s tariff threat would not materialize. However, with the tariffs now seeming likely, the BDI warns of a more significant decline. The German economy relies heavily on exports and high energy prices, combined with the potential tariffs on its largest trading partner, the US, pose a fundamental challenge to the country’s business model.