International Trade

The newly announced tariffs by the US administration on imports from nearly all countries could have severe negative economic consequences—most notably for the United States itself. Other countries are significantly less affected, with Germany and the EU only moderately impacted by comparison.

The Trump administration will impose 25 percent tariffs on all steel and aluminum imports into the United States tomorrow (March 12). These new protectionist measures are the first of their kind under Trump’s current term to directly affect the European Union. According to simulations by the Kiel Institute for the World Economy using the KITE model, the tariffs will primarily harm the US itself, while having virtually no negative economic consequences for the EU. However, Canada and Mexico face substantial repercussions.

U.S. President Donald Trump has announced his intention to impose 25 percent tariffs on European goods, particularly targeting the auto sector. His statement has raised the specter of a renewed transatlantic trade war that could have significant economic repercussions for both sides of the Atlantic. The Kiel Institute's KITE model simulations show that such measures would lead to economic contraction in both the EU and the United States, while also driving inflationary pressures.

The global economy is currently confronted with far-reaching changes, including in particular the ecological transformation and adaptation to climate change, which is promoting regional disparities and conflicts.

Exploring the driving forces and diverse impacts of international development processes, focusing on the global and regional interconnections of countries, companies, and the mobility of people, goods, and capital.

The Research Center “International Finance” investigates the risks and opportunities of financial globalization, including political risks.