EXPLAINED: How will the new US tariffs affect Germany?

Local Germany

16 hours ago

Following an
agreement between the EU and US President Donald Trump
, new tariffs – set at 15 percent on most European goods imported into the US – have come into force as of Thursday morning.
Germany, along with most nations that engage in trade with the US, has been rocked by a whirlwind of different tariffs and tariff threats from the US since the Trump administration took control in January.
Previous tariff announcements, as well as retaliatory tariff announcements by the EU, had elicited grave warnings from economists and business interests and sent global economies into a period a deep uncertainty.
With various tariffs at various rates having been applied and then altered or repealed many times over, you may be wondering, what does any of this really mean? Here's an overview of what the latest tariffs mean for people living in Germany.
How will the 15 percent tariff affect me?
Assuming you're not a major investor in a German export business, you probably wont notice the effects of the US tariffs, at least not directly.
The 15 percent import duty is to be levied on products from Germany that are sold in the US, so US-based companies and customers will be the ones to pay those higher prices.
Retaliatory tariffs
would have affected prices
for European consumers directly, but now that an agreement has been reached between Trump and the EU Commission, the EU has suspended any countermeasures for at least six months.
So consumers in Germany don't need to worry about immediate tariff related price increases.
READ ALSO:
Why gas bills in Germany are set to get cheaper
US made cars could actually get cheaper in Europe, because the recent trade agreement will see the EU scrap protectionary tariffs on American autos, which were previously set at ten percent. (But US car makers are affected by tariffs on parts and materials that they import from around the world, including Europe, so those car prices could rise as well.)
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How will German companies be affected?
As opposed to consumers, German companies could be more directly impacted by the tariffs if they end up losing business in the US due to increased prices on their products there.
According to a
report
by
Welt,
some big German companies are well positioned, thanks to having previously set up manufacturing plants in the US. This includes the gummy-bear maker Haribo, for example, and the tech giant Siemens.
Interestingly, many small and midsized German manufacturers are
not as concerned about the tariffs
– especially those who say their products are specialised enough that they cannot be replaced by US-made alternatives.
Billion-dollar agreements
On top of the 15 percent tariff rate, the EU has agreed to buy energy from the US worth $750 billion (€650 billion), as well as agreeing that a further $600 billion (nearly €520 billion) is to be invested in the US.
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It's unclear if that latter investment is a realistic sum. The EU Commission has suggested that European companies have expressed interest in making those investments but says it's ultimately up to them. Trump has spoken of the potential investments as a gift.
While the trade agreement appears heavily slanted in favour of the US, European leaders ,
including Chancellor Friedrich Merz
, have suggested that accepting the tariffs and trade terms is the best option.
"We have thus managed to preserve our fundamental interests, even if I would have wished for more relief…" he said shortly after the deal was announced.