US-China Trade War Could Cost Germany Thousands of Jobs
The trade war between the United States and China could result in significant job losses in German industry, according to a recent research report published by Allianz Trade.
The research says that if no agreement is reached between Washington and Beijing, Chinese exporters will increasingly turn to European markets, especially Germany.
Jasmin Groschl, senior economist at Allianz Trade, predicted in the report that seventeen thousand to twenty-five thousand manufacturing jobs will be lost in Germany due to Chinese goods being specifically directed to the country and increased competition.
Groschl stated that especially mechanical engineering, the textile industry, non-metallic mineral products, the electronics industry, computers and motor vehicles are at risk, corresponding to approximately zero two percent to zero three percent of total employment in German industry, CE Report quotes MIA.
He said the tariff war has disrupted the dynamics of global trade, putting German companies under pressure on two fronts - first, increased competition and supply chains that are closely linked to China and second, Germany's strong export-oriented business model, which is increasingly influencing foreign markets.
Without a bilateral agreement, according to Allianz Trade analysis, the loss of Chinese exports to the United States could reach up to two hundred and thirty-nine billion dollars.
Chinese companies are likely to try to enter other international markets and could therefore export around eighty billion dollars to the European Union.
According to the study, if no agreement is reached on tariffs, goods worth about $33 billion could enter Germany in the next three years, and this could increase Germany's total imports by 2.5 percent, it reports.
