Commerzbank: What Trump’s victory means for Germany

”Trump’s looming victory will have noticable implications for the eurozone and German economy. Trump is likely to implement at least some of the threatened tariff increases. Together with retaliatory tariffs by the EU, this points to rising inflation and growth risks in the eurozone. In addition, Germany continues to find itself on the defensive in the tax competition with the US. Trump’s ambivalent stance on NATO poses economic risks that cannot be ignored in the long term. Trump will not implement all of his plans one-to-one Even though Trump has won a majority in both houses of Congress, he is unlikely to implement his election platform one-to-one as president. This applies, for example, to his tariff plans (at least 60% on all imports from China, 10% on imports from all other countries). It is not clear whether his legal powers are sufficient for a general increase in tariffs. In addition.”

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