It is set to be one of the EU countries hit the hardest by Donald Trump’s tariff surge
  • Hotznplotzn@lemmy.sdf.orgEnglish
    35·
    2 days ago

    Maybe I’m nitpicking, but it is the U.S. that is heading back to the 1930s, and this is also what the article says if I got that right. So the headline is a bit misleading imho.

    But it’s not good for the EU and Germany, of course, although the impact varies greatly across member countries. Ireland is the country with by far the largest share of its exports going to the U.S., with a rate of >25%.The large economies like Italy and Germany show values of around 10%, exceeding those of France and Spain which are 7% and 5%, respectively.

    The US market is less relevant for the countries in Eastern Europe, where value chains are more integrated within the single market.

    If we look at importance of the U.S. market in terms of each EU country’s GDP, Ireland is highly dependent on the US if we consider its exports of goods and services together, as the US market represents around 20% of the country’s GDP.

    Other countries that are above the EU average include Cyprus, Luxembourg and Malta, as they provide services to the U.S. market that make up a large part of their national economies. And the same is true for Belgium, the Netherlands and Slovakia in exports of goods.

    Among the larger EU countries, Germany has the greatest exposure to the U.S., at at 5% of GDP, followed by Italy, at 4%, France (3%), and Spain (2%).

    So it’s not good, of course, but given the EU retaliates accordingly and restructures its economy, it could also mean a more integrated, independent EU market in the long term.

    It will hurt the U.S. much more than Europe imho.

    [Edit typo.]

    • HaraldvonBlauzahn@feddit.orgEnglish
      5·
      2 days ago

      Cyprus, Luxemburg and Malts, as they provide services to the US market

      That’s a nice way to say “tax havens”. Also, many US Big Tech companies have headquarters in Ireland and would pay taxes there … if only these dirt poor companies would have any revenue…

    • Venus_Ziegenfalle@feddit.orgEnglish
      10·
      2 days ago

      So the headline is a bit misleading imho.

      Given what Germany was up to in the 1930s I think “misleading” is putting it mildly 😅

    • Zwuzelmaus@feddit.orgEnglish
      15·
      2 days ago

      but it is the U.S. that is heading back to the 1930s,

      Just think one step further.
      One little step.

      US goes back to fascism. A little later Germany goes back to fascism.

      Germany has a strong tradition in following the US with every shitty fashion …

  • Buffalox@lemmy.worldEnglish
    17·
    2 days ago

    “The 1930s are back,” said Carsten Brzeski, an economist at ING Germany, comparing the wave of trade barriers imposed by the White House to 1930s-era protectionist trade rules.

    Hi Germany, I promise here in Denmark we will buy more German and less American.
    And at least this time we have EU, and a lot of countries like UK, Canada, Australia, Japan, South Korea, Taiwan and many other countries, that are probably also ready to increase trade with us (EU). Even China could be a partner in this situation.

    So although it will have an impact, I doubt it will be anywhere remotely close to the 30’s. And if ti’s any consolation, USA will probably be hit harder than Germany.

    • HaraldvonBlauzahn@feddit.orgEnglish
      11·
      2 days ago

      Causing economic chaos and sudden large job losses in Germany is surely a way to help Gwrmanys extreme right-wing party AfD. I wouldn’t advise to under-estimate that danger.

      Especially since the still-forming social-democrat/conservative coalition is surprisingly quiet on the rise of far-right practices in the US. Being distrustful, one could think that would-be chancellor Merz wants more to govern with the AfD - which, make no mistake, would probably be at least as bad as Trump.