STORY: :: A banking analyst says a hard stance against Trump’s tariffs may see the U.S. ‘suffer more’ than the EU
:: Hamburg, Germany
:: July 13, 2025
:: Cyrus de la Rubia, Chief Economist, Hamburg Commercial Bank
“If you look at the trade issue in an isolated way, I would very much recommend to take a hard stance because in my view, and this is also confirmed by economic models, the United States might even suffer more than the European Union from those tariffs which are implemented by or planned to be implemented by the European Union.”
:: File
“The tariffs will provoke an inflationary impact in the United States, and inflation means less purchasing power for the people and for the consumers and the United States is very much reliant on consumption as a driver of the United States economic growth and by this way it will take quite a significant hit, the economy.”
The latest tariff threats came on Saturday (July 12) after weeks of negotiations with major U.S. trading partners failed to reach a comprehensive trade deal.
After speculation the EU would take some retaliatory measures, the European Union announced on Sunday (July 13) that a negotiated solution on trade with the United States was preferred, with countermeasures further suspended until early August.
However, some business leaders and economists said a hard line approach was best. De la Rubia noted that the brunt of the U.S. tariffs, if implemented, would be felt by U.S. consumers, adding he felt the EU had some leverage in talks.
Germany, Europe’s biggest economy, is a big exporter to the United States, where it sells vehicles and automotive components, machinery and pharmaceuticals.
