Economics

890 readers

28 users here now

founded 2 years ago

We'll pass Trump tariffs back as higher prices for Americans: German firm (www.newsweek.com)

submitted 2 months ago by MicroWave@lemmy.world to c/economics@lemmy.world

10 comments fedilink hide all child comments

Summary

German engine maker Deutz said it will fully pass Trump’s new 20% tariffs on EU imports to American customers through price hikes.

The move underscores warnings that tariffs act as consumer taxes and could raise inflation.

Trump claimed the tariffs as necessary to combat trade imbalances and protect U.S. manufacturing. However, EU officials, including Ursula von der Leyen, pushed for zero-for-zero tariff deals, but Trump rejected them.

The EU plans retaliatory tariffs by mid-April. Economists and officials warn of recession risks and disrupted supply chains.

you are viewing a single comment's thread
view the rest of the comments

[–] Clent@lemmy.dbzer0.com 4 points 2 months ago

Some of them will end up with increased profits because Trump supporters are prepared to pay more. As we saw in the last inflation cycle, the incentive to exploit a crisis to increase margins is hard to ignore.