A leading German economist has voiced concerns regarding the recently concluded trade agreement between the United States and the European Union, describing it as inadequate in its scope. Ulrike Malmendier, a member of the Council of Economic Experts, expressed surprise at the omission of services within the agreement’s focus.
Speaking to RTL and ntv, Malmendier highlighted the absence of discussion surrounding the potential for tariffs on services, specifically mentioning the digital sector and American investment banks. She pointed out that a more comprehensive accounting, including services, would reveal that the European trade surplus relative to the U.S. is diminishing.
Malmendier cautioned about potential economic repercussions for Germany. She warned that German companies lack the profit margins to absorb significant tariff increases – potentially as high as 15 percent – while remaining competitive in the American market. Export-dependent sectors, including the automotive, mechanical engineering and chemical industries, are particularly vulnerable.
The economist warned that investment could decline as a consequence, given the critical importance of the U.S. market for Germany’s export-oriented industries. She characterized the situation as a “significant setback”.
