TAIPEI CITY, Taiwan, July 11, 2018 (Newswire.com) - According to recent official data, German exports grew by more than imports in May, causing the trade surplus to increase. Reed Cavendish Wealth Management analysts say this is further indication that Germany’s economy remains on solid ground even in the face of rising trade tensions with the United States.
Reed Cavendish Wealth Management analysts say seasonally-adjusted export figures increased by 1.8 percent on a monthly basis while imports increased by 0.7 percent. This was more than the predicted increase of 0.75 percent for exports and 0.3 percent increase for imports.
Reed Cavendish Wealth Management analysts believe the recent weakening of the euro should provide some relief over the next several months and help to counterbalance the tariffs set by the United States on European steel and aluminum.
Reed Cavendish Wealth Management analysts say that although the effects of trade tensions on the German economy have so far been minimal, a fully-fledged trade war would have a much greater negative impact on Europe’s largest economy.
German finance minister Scholz recently cautioned that United States president Donald Trump’s decision to implement import tariffs on products coming from China and the European Union would damage the global economy.
In June, Trump threatened to implement an import tariff of up to 20 percent on all motor vehicles assembled in the European Union. Reed Cavendish Wealth Management analysts say this move could devastate the EU’s auto industry and destroy the current model for selling vehicles in the United States.
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Source: Reed Cavendish Wealth Management