Shortly before the US election on November 5th, Democratic candidate Kamala Harris and her Republican rival Donald Trump face each other in a tight race for the presidency. The outcome could have significant consequences for trade with Germany and the global economy.
The consequences for the German economy
Regardless of who wins, the German economy does not expect US trade policy to be liberalized, as both candidates represent protectionist approaches. In contrast to Donald Trump, Kamala Harris is likely to be willing to talk.
During the election campaign, Trump announced a significant increase in tariffs: 10 to 20 percent on foreign imports, even 60 percent on products from China. Experts assume that fewer countries would trade with the USA – but also that other countries would also introduce tariffs.
According to a study, this could also weaken German economic growth by one percent, and car and mechanical engineering companies would be particularly affected. Things would look different if Harris won: with smaller tariff increases, the loss of growth for the German economy would be marginal.
For more details on the impact of the US election on the global economy, watch the video above.
The original for this article “Trump against Harris: Consequences of the US election for the global economy” comes from glomex.
