Arya News - The trade war initiated by US President Donald Trump could cost Germany 290 billion euros ($330 billion) by 2028, equivalent to an annual loss of 1.6% of the country`s GDP, the Handelsblatt newspaper reported, citing a study by the German Economic Institute (IW).
The US tariffs could cost the entire European Union 1.1 trillion euros between 2025 and 2028, the report said on Wednesday. The tariffs will hit developing countries and countries with transition economies even harder, for which the IW predicts a "dramatic decline in growth rates," the report read. On April 2, Trump signed an executive order that implemented reciprocal tariffs on imports from various countries. The base tariff rate was established at 10%, with higher rates applied to 57 countries based on the US trade deficit with each specific nation. On April 9, Trump declared that a baseline tariff of 10% would be imposed for 90 days on over 75 countries that had not retaliated and had requested negotiations, except for China. As the trade war progressed, US tariffs on Chinese goods hit 145%, while China"s tariffs on American imports reached 125%.