"Trump Tariffs 20% Then Eurozone GDP 1.3% ↓ 4 Years Later"

If former U.S. President Donald Trump, the Republican presidential candidate of the U.S., retakes power and imposes universal tariffs of 20 percent, the 20 countries that use the euro and the eurozone's gross domestic product will fall by 1.3% in four years, according to an analysis.

According to the business magazine Handelsblatt and others, the German Economic Research Institute predicted this in a report released on the 24th local time, assuming the election of candidate Trump and the introduction of universal tariffs by the U.S. government.

The institute predicts that if the U.S. imposes a 20% universal tariff starting next year and the European Union and the EU respond with the same tariff rates, GDP in the eurozone will shrink by 1.3% and Germany by 1.5% in 2028.

If this happens, Germany is expected to lose 180 billion euros in GDP in four years and about 268 trillion won in our money.

If the U.S. and EU impose 10% tariffs on each other, Germany's estimated GDP loss will be reduced to 127 billion euros, or about 189 trillion won.

Former President Trump is vowing to impose 60% universal tariffs on Chinese imports and 10-20% on imports from the rest of the country if he comes back to power.

The International Monetary Fund, the IMF, also estimated that a 10% two-way universal tariff would reduce global GDP by 0.8% next year and by 1.3% in 2026.