Citing stalled trade talks, the US president has threatened a 50% tariff on imports from the EU.
A report by the German Economic Institute (IW) released on Friday indicates that the German economy could suffer losses of up to €200 billion by the end of 2028 if President Trump’s proposed 50% tariffs remain in place throughout his term.
Official data shows that the US is Germany’s primary trading partner, with a total goods exchange of €253 billion ($287 billion) in 2024. In the first quarter of 2025, Germany’s export surplus with the US reached €17.7 billion, the highest among all its trading partners.
The Federal Statistical Office also noted that exports to the US exceeded imports by nearly 75%.
According to the IW report, German economic output would be an average of 1.1% lower between 2025 and 2028 due to the increased tariffs. Should the EU respond with similar measures, the total economic damage could rise to €250 billion by 2028.
In a Truth Social post on Friday, Trump alleged that the EU was initially created “for the primary purpose of taking advantage of the US on trade” and described the bloc as “very difficult to deal with.”
He accused the EU of implementing detrimental economic policies, taxes, and regulations, as well as initiating “unfair and unjustified lawsuits against American companies,” which he claims have led to a “totally unacceptable” trade deficit.
The US Trade Representative’s office estimates the current deficit at approximately $240 billion annually. Trump announced that, due to the stalled negotiations, he is recommending a 50% tariff on all goods from the EU, effective June 1, 2025.
Treasury Secretary Scott Bessent, speaking on Fox News later that day, supported the president’s stance, suggesting that Trump considers the EU’s proposals inadequate compared to those of other major trade partners.
“I’m not going to negotiate on TV, but I hope this serves as a wake-up call for the EU,” he stated.
EU Trade Commissioner Maros Sefcovic stated on X on Friday that the EU is committed to a trade agreement with the US based on mutual respect, not threats. He added that “EU-US trade is unmatched and must be guided by mutual respect,” but the bloc is prepared to defend its interests.
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