MNI BRIEF: Reciprocal US Tariffs Hit To Germany Minimal - Ifo

Reciprocal tariffs imposed by Washington would reduce German exports to the U.S. by less than 3%, according to a report from the Munich-based Ifo Institute on Wednesday.

If U.S. President Donald Trump were to increase tariffs on products by the amount levied by its trading partners on corresponding U.S. products and the EU were to take no countermeasures, German exports would fall by 2.4%, Ifo said. 

“The impact of reciprocal tariffs would be significantly lower for Germany than with a blanket U.S. tariffs increase of 20%,” said Ifo trade expert Lisandra Flach, noting the  gap in tariffs between the U.S. and the EU is relatively small at 0.5 percentage point.

According to earlier simulations by the ifo Institute, German exports to the U.S. would fall by around 15% in the case of U.S. tariffs of 60% on China and 20% on the rest of the world including the EU.  (See MNI: EU's Sefkovic Offers Trade Compromises To Trump - Official )