Tariff spiral threatens: Lower Saxony is fighting against US customs policy!

Tariff spiral threatens: Lower Saxony is fighting against US customs policy!

The economy of North Rhine-Westphalia can prepare for serious challenges. US President Donald Trump is planning to introduce drastic import tariffs of 30 percent on goods from the EU as early as August 1, 2025. This announcement is causing concern, not only in the USA, but also in the European economy, as the Lüneburg-Wolfsburg Chamber of Industry and Commerce makes clear in a recent statement. Managing Director Michael Zeinert warns of an impending tariff spiral and calls for a clear EU strategy to cushion the negative consequences. “We now have to demonstrate a good hand,” says Zeinert, who at the same time points out the need for new trading partners and less bureaucracy.

The effects of these tariffs could hit Lower Saxony's industry particularly hard, as the share of exports to America in 2024 was already 7.2 percent, which corresponds to around 7.3 billion euros. The motor vehicle, machinery and chemical products sectors in particular would be under the most pressure if the customs situation actually escalated. According to lueneburgaktuell.de, motor vehicles and vehicle parts as well as machinery and chemical intermediate products are among the most important product groups for export to the USA.

Europe in a quandary

The EU finds itself in a quandary because the upcoming tariff rate could not only burden companies based there, but also the US economy itself. Economic experts report that price pressure in the USA would increase, which would also have no positive consequences for the country. This makes the entire situation particularly delicate, because the German economy's hope for a less high tariff rate of ten percent was greatly disappointed by the announced increase manager-magazin.

The Federation of German Industries (BDI) interpreted the tariff announcement as an “alarm signal” that affects both European and American industry. In addition, the chairman of the Trade Committee in the European Parliament, Bernd Lange, emphasizes the importance of reacting against the tariff increase. He calls on the EU to activate a list of possible compensatory measures. At the same time, it remains to be seen whether Trump will possibly abandon the plans, as he has in the past.

Strategies for the future

Amid this precarity, experts still see opportunities. Zeinert emphasizes that a broader trade policy with new partnerships and the diversification of supply chains are necessary to counteract dependence on individual markets. India, Indonesia, Thailand and Malaysia in particular could represent important partners for future cooperation in order to make the economy more stable.

While the EU works on an agreement with the USA, time remains of the essence. If no agreement is reached during the negotiations, the affected industries will be required to react quickly to changing market conditions. As zdfheute reports, it remains to be seen what countermeasures the EU has up its sleeve. The drama of this planned tariff increase cannot be underestimated, both for the European and American economies.