U.S. tariffs to cost Germans up to 20 billion euros this year: report

[DonViejo]

Source: Reuters



JULY 21, 2018 / 8:00 AM / UPDATED AN HOUR AGO

U.S. tariffs to cost Germans up to 20 billion euros this year: report

Reuters Staff

BERLIN (Reuters) - U.S. President Donald Trump’s tariffs will lead to a drop in prosperity in Germany this year and are likely to cost Germans up to 20 billion euros ($23.44 billion), the head of German think-tank IMK said.

The United States imposed tariffs on EU steel and aluminum on June 1 and Trump is threatening to extend them to EU cars and car parts.

“The policy of tariffs will cost Germans up to 20 billion euros in additional income this year,” Gustav Horn, director of the IMK, which is close to the trade unions, told weekly magazine Der Spiegel. “Without Trump’s policies, the upturn would do better in terms of exports,” he added.

If firms had better export prospects, they would have reason to invest more, he said. But that is not happening now and is resulting in income and number of jobs being lower than possible, he added.



Read more: https://www.reuters.com/article/us-usa-trade-germany/u-s-tariffs-to-cost-germans-up-to-20-billion-euros-this-year-report-idUSKBN1KB0EE?il=0

[Crutchez_CuiBono]

1. Don't worry.

For everything you can't get from the USA, you can buy from russia now, or China. Nice job dt. Nice job. A hole.

[BlueIdaho]

2. Exactly...

They could lose a fortune in trade, but as part of the EU they just signed a new multi-billion dollar trade deal with China. The sad truth is - the world can do just fine without American goods. The dumbshit in the White House is helping them realize that.

[Snellius]

3. And once new supply chains have been established, US will be out of the loop

It's really more the long term effects of this tariff war that will hit home. The US will become an international trade pariah. Largely because of the tactics used: other nations do not like being bullied even beyond economic interests, like Canada.

[Crutchez_CuiBono]

4. And

that's why contracts are made and entered into...for long term planning. We were already going down bc of manufacturing lay-offs. This is irrevocable in the short term, if ever.
Enemy within. The 5th Column.

[BlueIdaho]

6. An unreliable trade partner that ignores its obligations

Is only marginally better than no trade partner at all.

[Snellius]

7. Trump has no understanding of cooperation

He seems to think he can just force other countries or people to do what he wants. He only understands bribes or threats. But there's a personal and emotional side of trade agreements with nations as with people. It's commonly misunderstood, by the left as well as the right, that capitalism is based on greed. Historically it is really based on trust. It works fine in societies with a peaceful social system with a sound legal system that everyone inherently and sincerely shares. Without that you end up with countries like Russia, a survival of the fittest capitalism run by oligarchs and mafia rule. It takes more than laws and contracts and even market prices. Numbers and pieces of paper have no real force unless everyone agrees to hold up their end of the bargain. This is why Trump's "art of the deal" is so full of shit.

In this he's the perfect representation of the Republican philosophy taken to its extreme. History repeats itself, said Marx, first as tragedy then as farce.

[Crutchez_CuiBono]

9. Take a good look America...

this is what corporate owners and people of wealth do everyday. There are few compassionate rich folks. They manipulate w the money they have, and yell about how hard they work. A good % is inherited wealth...i give you don tr.

[olegramps]

5. It is a multifacited campaign to destroy NATO and the Europian economy and the Russians walk in.

These people envision a world controlled by the wealthy, an oligarchy with authoritarian presidencies. The major block is a progressive middle class that must be destroyed. As Aristotle concluded in his study of governments, a democracy can only exists with a thriving well informed middle class. Our forefathers were well acquainted with the classics and their lessons that continue to ring true 2300 years after Aristotle came to these conclusions.

[Crutchez_CuiBono]

10. Good one.

Thanks for the info.

[Calista241]

8. This is actually one policy of DT that I don't absolutely hate.

The goal, I would hope, isn't to have tariffs for no reason or raise money because of tariffs, but it's to ultimately remove most tariffs.

Xi and Merkel can't just visit Africa and sign a trade deal and magically all their problems go away. China's economy, and the German auto industry is basically designed to sell shit to the US. Can they sell that same shit to Africa, Europe, or somewhere else? The answer is no, at least not immediately and not without spending billions and spending decades on infrastructure changes.

It's would be far easier for them to remove their tariffs and stick it to us some other way. And BMW, VW and Mercedes Benz will be putting an untold amount of pressure on Merkel and the German gov't to not fuck it up for them. While Merkel and the Bundestag may want to bitch about DT, and may want to do anything to spite him, those companies have a lot of power. They won't want to be seen as totally caving to the US and Drumph though, so what do we give them in return to let them save their dignity?

However, I have absolutely zero confidence in Trump's ability not to totally fuck everything up.

[randr]

11. His policies are going to put a pox on all things American

It will take a generation to get back the trust and esteem Americans had fostered in American made goods.
Just when millions and millions of people in China and India are making it a level of prosperity where they can afford a reasonable living the lsos has shut off the flow of our goods. They will ultimately be replaced by cheaper and better products.
Not to mention the cheap goods from overseas that many Americans have depended on to maintain a level of sustenance that will now come at a premium price.

[BigmanPigman]

12. The moron wants them to pay more for NATO

then makes trade deals that hurt them and keep them from having the funds to pay more since now they have the tariffs. It makes no sense.

[beachbum bob]

13. it is what it is, believe me its going to cost america a whole lot more than just $20 billion this

year

[roamer65]

14. This is why the EU just signed a big free trade deal with Japan.

The Japanese can supply them with most of what they need, tariff free.

Germany and Japan together again. How’s that one going to work out?