Decrease in GDP her Germany 0.15% within one year and losses of 6.5 billion euros will be triggered by tariffs agreed between the European Union and the US, estimates the Kiel Institute. The consequences for the European economy will also be noticeable.

The Kiel Institute for the World Economy (IFW) calculated exclusively for Handelsblatt the short -term impact of 15% and 50% on steel and aluminum general duties and provides losses of 6.5 billion euros for the German economy and a reduction of 0.15%. For the European Union as a whole, the decline is estimated at 0.1% – to 0.01% for France and to 0.02% for Italy. IFW, however, clarified that his estimates are based on particularly volatile elements and may be adjusted in the future, as they do not include e.g. EU’s intention to reduce selected duties for US cars and agricultural products.

The German financial newspaper at the same time highlights the possible future problems from yesterday’s agreement: “Furable details can also lead to new conflicts,” Handelsblatt says with a look at potential new tariffs on sensitive goods, such as medicinal products, and the US -based drugs and microchips.

In its article, the newspaper also stresses that Donald Trump did not suddenly became “Promotable”, especially in commercial policy and describes the US president’s strategy as “uncertainty as a lever of power”.

In the same vein, the director of the German Economic Institute (IW) of Cologne Michael Hutter warned of further abuses from the US: “We cannot rely on tranquility now, especially because purchases and investment commitments are difficult to adhere to accurately. Donald Trump will never completely withdraw the threat of duties from the table, “Mr. Hutter told the newspapers of the Funke Group.

The German car industry, however, welcomed the deal, while also warning of burdens on companies in the industry. “It is essentially positive that there was a further escalation of the trade dispute, but it is also clear that the 15% will cost billions of euros in German automakers and will be particularly burdened in a phase of their transformation,” said the German President.