MOSCOW, April 17 — The trade war initiated by United States (US) President Donald Trump could cost Germany €290 billion (RM1.45 trillion) by 2028 — equivalent to an annual loss of 1.6 per cent of the country's gross domestic product.
Sputnik/RIA Novosti, quoting the Handelsblatt newspaper's report on Wednesday on a study by the German Economic Institute, reported that the US tariffs could also cost the entire European Union €1.1 trillion (RM5.51 trillion) between 2025 and 2028.
The tariffs will hit developing countries and countries with transition economies even harder, for which the IW predicts a "dramatic decline in growth rates".
On April 2, Trump signed an executive order implementing reciprocal tariffs on imports from various countries. The base tariff rate was 10 per cent, with higher rates applied to 57 countries based on the US trade deficit with each specific nation.
On April 9, Trump declared that a baseline tariff of 10 per cent would be imposed for 90 days on over 75 countries that had not retaliated and had requested negotiations, except for China.
As the trade war progressed, US tariffs on Chinese goods hit 145 per cent, while China's tariffs on American imports reached 125 per cent.
— Bernama
