The Impact of Reciprocal US Tariffs on German Exports

If implemented on April 2, the “Liberation Day” announced by US President Donald Trump would have profound implications for the global trading system. A new Policy Brief shows that new reciprocal US tariffs would reduce German exports to the United States by 2.4% to 3%. These relatively small effects for Germany compared to a scenario with an across-the-board 20% increase in US tariffs on all trading partners are mainly due to the relatively small tariff gap between the US and the EU.