According to a report by Xinhua News Agency, the German Institute for Economic Research recently released a study detailing the potential economic fallout of the "reciprocal tariffs" policy. Over the next four years, this measure could result in a €290 billion loss for Germany and a staggering €1.1 trillion loss for the European Union.
The report warned that the US "reciprocal tariffs" policy, which risks triggering a global trade war, would have widespread negative consequences for the global economy. The institute estimated that such tariffs could directly cost the German economy €200 billion between 2025 and 2028, equating to an average annual GDP loss of approximately 1.2%. Factoring in retaliatory measures from trading partners, Germany's total economic losses could expand to €290 billion. For the EU as a whole, cumulative losses over four years could reach €1.1 trillion.
The study highlighted that "reciprocal tariffs" create significant uncertainty, posing a severe threat to the global investment climate. It noted that the policy violates World Trade Organization (WTO) rules and lacks scientific justification in its calculation methods. It also criticized the US for ignoring its long-standing trade surplus in services with the EU. The report urged the EU to adopt strong countermeasures.
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