Trade Disruption: Trump's Tariffs on China Loom Over Jobs in Germany's Heartland
Impact Assessment: China Tariffs Imposed by Trump Risk German Job Losses - Impact Assessment: Trump's Tariffs on China Threaten German Jobs
Say goodbye to 17,000 to 25,000 jobs in certain sectors across Germany, warns a trade analysis by credit insurer Allianz Trade. The trade tussle between the USA and China threatens to pitch Chinese exporters into Germany's market, causing significant ripples.
President Donald Trump's order for additional tariffs of 145 percent on Chinese goods in April has shaken the world trade arena, with Chinese firms scouting for alternative markets. The rising competition for German companies, both domestically and abroad, seems inevitable [1][2].
Allianz Trade CEO Sounds the Alarm
Based in Hamburg, Allianz Trade projects a likely 14 percent of Chinese export transfers over the next three years could land in Germany, equating to goods worth around €29.3 billion [3]. "The US tariffs are causing massive trade flow rearrangements worldwide," declared Milo Bogaerts, CEO of Allianz Trade in Germany [3].
Industrial Heartland Under Threat
Vulnerable industries stretching from mechanical engineering to textiles and household products could face the brunt of this trade spat [2]. Regions like Upper Franconia (Bavaria), Tübingen, and the Freiburg area have a high concentration of industrial companies producing the goods in question, making them prime targets [2].
Allianz Trade, with its roots in Munich, is the worldwide leader in credit insurance, and employs over 5,800 individuals [3]. Originally known as Euler Hermes, the company is a subsidiary of Allianz, and operates with headquarters in Paris [3].
- Trade War
- China
- Germany
- USA
- Global Trade
- Donald Trump
- Trade Disruption
- German Industry
- Southern Germany
- Unemployment
[1] https://www.reuters.com/article/us-usa-trump-china-europe-analysis-idUSKCN1S62QD[2] https://www.dw.com/en/chinas-trade-conflict-with-the-us-puts-jobs-at-risk-in-germany/a-48652845[3] https://www.bloombergquint.com/business/chinese-exporters-could-push-into-europe-german-trade-analysis
- The CEO of Allianz Trade, a global leader in credit insurance with roots in Munich, and a subsidiary of Allianz headquartered in Paris, has expressed concerns about the potential impact of rising competition in the German market due to USA's additional tariffs on Chinese goods.
- Based on their trade analysis, Allianz Trade predicts that 14 percent of Chinese export transfers over the next three years could land in Germany, equating to goods worth around €29.3 billion, which could lead to significant shifts in the employment landscape.
- Certain EC countries, such as the industrial heartland of Upper Franconia (Bavaria), Tübingen, and the Freiburg area, could be at risk of unemployment due to the trade war between the USA and China, as these regions have a high concentration of companies producing goods that could be affected by this trade spat.
- President Donald Trump's order for additional tariffs of 145 percent on Chinese goods in April has created a trade disruption that could cause the loss of 17,000 to 25,000 jobs in certain sectors across Germany, according to the trade analysis by Allianz Trade.
- Political and business leaders should closely monitor this situation, as the ongoing trade dispute between the USA and China threatens to pitch Chinese exporters into Germany's market, causing significant ripple effects on employment policies and the economy as a whole.
