Aiwanger warns: Trump's tariff increase could cost Bavaria billions!

Aiwanger warns: Trump's tariff increase could cost Bavaria billions!

In recent days, the relationship between the USA and the EU has once again become tense. How BR.de reported, US President Donald Trump announced that he would impose tariffs of 30 percent on goods from the EU from August 1st. This decision has sparked worried reactions in the German business community, particularly from Bavaria's Economics Minister Hubert Aiwanger, who described the measure as a "serious blow to the Bavarian and German economies."

Aiwanger is convinced that Trump himself could be dissatisfied with this escalation and sees the possibility that the situation will change by the deadline. His hopes are that the US economy in particular will put pressure on Trump to make the negative effects of the tariffs clear. He also emphasizes that the economic ties between both sides must lead to a sensible trade agreement.

Economic impact

The upcoming tariffs could have a massive impact on the Bavarian economy. Manfred Gößl, general manager of the IHK Munich and Upper Bavaria, warns that the new tariffs could cause annual damage of around five billion euros for Bavaria, which corresponds to around half a percent of economic output. These high tariff rates particularly affect the export-dependent German economy, which has already suffered from the tariffs that have been in force since April ZDF today reported.

The auto industry, which relies on the attractive market in the USA, is particularly affected. With a new tariff rate of 30 percent, many in the German economy will be left behind, as they had originally hoped for a basic tariff of just ten percent. Such an increase in tariffs would also put US price dynamics under pressure, which, according to ZDF economic expert Florian Neuhann, leaves both sides as losers in this escalation.

Political reactions and strategy meetings

The EU warns of countermeasures if Trump sticks to his announcement. Brussels has already prepared retaliatory tariffs on US products worth around 21 billion euros, but has initially suspended them due to ongoing negotiations. The chairman of the trade committee in the European Parliament, Bernd Lange, calls for a tense reaction: “To protect our economy, we need clear measures,” says a comment on the developments.

The current situation will also be discussed at the upcoming EU meeting in Brussels, which will be a central topic of the day on Monday. The negotiations between the EU and the USA are at a critical point. The last 90 days have been described as “crunch time,” a period of intense and crucial negotiations.

Bavarian politics and business appeal to everyone involved to keep a cool head and support a gradual approach. Ultimately, an agreement in the next two weeks could bring much-needed solutions before trade conditions deteriorate further - a development that should be a top priority for both the EU and the US South German newspaper reported.