Trade war with the USA threat to Germany. This is their main market

A threat to Germany is a trade war from the USA, because the United States constitutes the main market for Germany – the Polish Development Fund assessed in the PAP provided report. 10 percent goes to the USA. German exports of goods.

“A threat to Germany is a trade war from the USA, because the United States constitutes the main market for Germany (…). President Donald Trump introduced duties in the amount of 20 % for imports from the European Union. For cars that are an important good supplied by Germany to the USA and further for car parts he introduced duties in the amount of 25 percent.” – Plan the Polish Development Fund in a report made available to PAP. The data collected by PFR shows that 10.4 percent went to the USA. German exports of goods.

On Wednesday – so before preparing the report – the EU announced that she was imposing retaliation on the US. Some of them will enter in April, some in May, and some in December. Earlier, the US administration announced that he would respond to the retaliation with an increase in original duties.

“The preliminary calculations of the IFO Institute show that the duties introduced by the US will reduce German GDP in 2025 by -0.3 percent (…) which will cause another recessive year in the German economy. American and due to the fact that China in search of new markets will be competition for German exporters in other countries, “PFR pointed out in the report.

According to the fund's analysts, the worse results of the German automotive industry will also translate into losses of Polish companies. Polish companies from the industry are a large supplier of components for Germany.

“According to Dun & Bradstreet data, the losses of German automotive will take nearly USD 7.7 billion, while the losses of Polish car parts manufacturers, whose products would finally be found in cars intended for the American market, are estimated at approx. USD 162 million” – pointed out PFR.

PFR reminded that in 2024 Poland was promoted to the fourth recipient of German goods, which was caused by a decrease in Germany's exports to China. The USA, France and the Netherlands are in front of Poland. At the same time, Poland is the fourth largest supplier of goods to the German market after China, the Netherlands and the USA. Germany for Poland is the most important trading partner as the largest recipient of Polish exports. (PAP)

MS/ Mick/