A leading German economist has voiced concerns regarding the recently concluded trade agreement between the United States and the European Union, describing it as falling short of expectations. Ulrike Malmendier, a member of the Council of Economic Experts, expressed surprise at the omission of services from the agreement’s focus.
Speaking to RTL and ntv television stations, Malmendier highlighted the potential for tariffs on services, specifically mentioning the digital sector and American investment banks. She noted that the European trade surplus with the U.S. significantly shifts when services are factored into the calculations.
Malmendier cautioned about potential economic repercussions for Germany. She emphasized that German businesses lack the profit margins to absorb substantial tariff increases – such as a 15% levy – while maintaining competitiveness in the American market. Industries heavily reliant on exports, including the automotive, machinery and chemical sectors, are particularly vulnerable.
The economist warned that a potential decline in investment could result from the agreement, citing the critical importance of the American market for Germany’s export-driven industries. She suggested that the current arrangement could represent a significant setback for those sectors.