Summary
German engine maker Deutz said it will fully pass Trump’s new 20% tariffs on EU imports to American customers through price hikes.
The move underscores warnings that tariffs act as consumer taxes and could raise inflation.
Trump claimed the tariffs as necessary to combat trade imbalances and protect U.S. manufacturing. However, EU officials, including Ursula von der Leyen, pushed for zero-for-zero tariff deals, but Trump rejected them.
The EU plans retaliatory tariffs by mid-April. Economists and officials warn of recession risks and disrupted supply chains.
Some of them will end up with increased profits because Trump supporters are prepared to pay more. As we saw in the last inflation cycle, the incentive to exploit a crisis to increase margins is hard to ignore.