Potential job losses of 25,000 in Germany due to trade disputes between the U.S. and China.

Potential job losses of 25,000 in Germany due to trade disputes between the U.S. and China.

Let's dive into the heat of the US-China trade war and its potential consequences on the German economy. In the event that Washington and Beijing can't come to an agreement, some of the goods China would have shipped to the US could find their way towards Germany. This could spell trouble for tens of thousands of jobs in the manufacturing sector, according to an analysis by Allianz Trade.

The credit insurer explains that with increased competition, 17,000 to 25,000 jobs in the German industry could be at risk. Sectors particularly vulnerable to Chinese imports would be mechanical engineering, textiles, household goods, electronic devices, automotive manufacturing, and more. Regions like Upper Franconia, Tubingen, and Freiburg may bear the brunt of this potential economic shift.

Now, while this analysis paints a grim picture, it isn't all doom and gloom. Chinese goods could lead to lower purchase prices for many intermediate and raw materials, which would at least partially increase corporate margins. Moreover, German companies have traditionally shown robustness and resilience, especially in the face of strong competition from China.

That being said, it's essential to keep an eye on the US President's rhetoric, who has hinted at increasing tariffs to 80%. This, however, would depend on his finance minister's decision. Though some critics view this as isolationist, the impact of these tariffs on global trade, including in Germany, remains uncertain.

For the full story, check out our exclusive interview with the new Economics Minister and delve deeper into how Germany plans to navigate this economic turbulence. Stay tuned for more insights on the US-China trade war and its ripple effects on the global economy!

[1] - Allianz Trade Analysis[2] - Kiel Institute Report[4] - German Newspaper Article

1. The potential impact of increased tariffs, as suggested by the US President, on the global trade, including in Germany, remains uncertain.
2. German companies, known for their robustness and resilience, could be at risk due to the US-China trade war, with sectors like mechanical engineering, textiles, household goods, electronic devices, automotive manufacturing, and more being particularly vulnerable to Chinese imports.
3. If Washington and Beijing can't reach an agreement, there could be a shift in goods from China to Germany, potentially leading to the loss of 17,000 to 25,000 jobs in the German industry, according to Allianz Trade Analysis.
4. While increased competition from Chinese goods could lead to lower costs for intermediate and raw materials, thereby increasing corporate margins, the robustness of this effect in the long term is questionable, as indicated by the Kiel Institute Report.

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