Consequences of trade policy
Municipalities expect the income decline from US tariffs
US President Trump sends shock waves around the world with his punitive tariffs. Specifically, this will soon be noticeable in German cities and municipalities.
As a result of the special US special tariffs, the municipalities in Germany soon expect lower income. “Zölle meet the export-oriented German economy particularly hard,” said the managing director of the German Association of Cities and Municipalities, André Berghegger, the “Welt am Sonntag”.
“The profits of the companies are expected to be lower – and thus also the trade tax that ultimately depends on the profit of the companies. Therefore, we will feel the effects of these decisions directly in the municipal health insurers,” argued Berghegger.
Local Association: Reasons In the event of investments, would be fatal
He expects savings from the municipalities. Reasons in the investments in the infrastructure are inevitable. “In view of an existing investment deficit of 186 billion euros and necessary massive investments in the transformation, this would be fatal, especially for the economy,” said Berghegger.
For the EU and thus Germany, the new US base custom of 10 percent and 25 percent inches on cars, steel and aluminum applies. Trump has suspended flat -rate tariffs from 20 percent to imports from the EU for 90 days last week. The city and municipal association represents around 11,000 municipalities through its 17 member associations.
dpa
Source: Stern
