BERLIN, March 27. /TASS/. German experts believe that imported duties of 25% on imported cars announced by US President Donald Trump will not have a significant impact on Germany's economy.
"The impact on Germany is likely to be limited so far," Veronika Grimm, member of the German Council of Economic Experts, told the DPA agency.
She noted that, according to the Kiel Institute for the World Economy, as a result of declared measures, the reduction in GDP of Germany will be less than 0.2 percentage points.
"Many - although not all - automakers now have production capacities in the United States. This means that they will not suffer so much from duties," Grimm said.
She also noticed that the EU members should coordinate the actions for the adoption of countermeasures. In her opinion, this may include importing duties from the United States.
"However, you can also introduce digital taxes that will primarily affect the American corporations. The goal, of course, should be the cancellation of these measures on both sides. In the end, this will only harm economic development in these already difficult times," the expert summed up.
In turn, Marcel Fratzscher, head of the German Institute for Economic Research (DIW), believes that the US duties for cars hit Germany’s economy stronger than others.
"However, the direct impact on the economy of Germany as a whole, probably, is still limited," he stressed. He believes that many Americans would continue to buy high-quality German cars even at higher prices. The economist added that he is more concerned that the unpredictability of the US President will further enhance the uncertainty for German companies and will undermine trust.
On March 26, Trump said that the United States will introduce import duties of 25% for all cars produced outside the country. The duties of 2.5% that were in effect earlier, should also be preserved, due to which the new tariff rate will be 27.5%. Commenting on this statement, Robert Habeck, acting Federal Minister for Economic Affairs and Climate Action, said that the EU would not "succumb to the United States" and should give a decisive response, but at the same time continue negotiations with Washington on trade disputes.