April 2, 2025 | Global impact of the new trade package”
US trade policy has undergone significant changes under US President Donald J. Trump in recent weeks. With the introduction of a comprehensive tariff package, the US government aims to reduce trade deficits and strengthen the domestic economy. These measures have far-reaching impacts on international trade relations and the global economy.
Below, we present the seven most important points of Trump's tariff package from April 2, 2025, and their effects:
1. Introduction of tariffs: Starting Saturday, April 5, 2025, imports from all countries will be subject to a flat ten percent tariff. Additionally, a complex mechanism will be introduced that provides for higher tariffs for many countries, beginning April 9 [1].
2. Affected countries: Some countries will be particularly hard hit, including crisis countries like Syria and Myanmar, as well as the African microstate Lesotho and the island group Saint-Pierre and Miquelon. China will have to cope with tariffs of 34 percent, while the UK, Brazil, and Singapore will have a base tariff rate of ten percent.
3. Impact on the German economy: The tariffs could mean a permanent decline in German GDP by 0.3 percent. Key industries such as pharmaceuticals, automotive, and mechanical engineering are particularly affected. Studies suggest that German exports to the US could drop by about 20 percent.
4. EU countermeasures: The EU is preparing countermeasures, including extensive counter-tariffs and levies on digital services from US companies. Already announced is the reintroduction of special tariffs on US products such as jeans, bourbon whiskey, motorcycles, and peanut butter.
5. EU negotiation offers: The EU could offer tariff reductions on goods such as US cars and new agreements, for example, to expand American exports of liquefied natural gas (LNG). Other options include importing more military technology and agricultural goods from the US.
6. Avoiding a trade war: The EU wants to avoid a trade war and remains open to negotiations. EU Commission President Ursula von der Leyen emphasized that it is not too late for negotiations and appealed to the US side to engage in talks.
7. National emergency: President Trump has declared a national emergency to justify the tariffs. The US government cites economic and security risks due to trade deficits with other countries as the reason.
This table shows the individual tariffs imposed by the US government under US President Trump.
Further information: Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security – The White House
Recommendations for action
Check affectedness:
Carry out a systematic analysis and assessment of the extent to which imported goods and existing contracts are affected by the change.
Up-to-date information:
Ensure that current and important details are made available.
Data analysis:
An accurate database is an important basis for being able to make the best possible decisions in the near future.
