Heads Up: Potential Loses of Thousands of Jobs as US-China Trade War Impacts Germany's Economy
Escalating US-China tariff disputes may potentially imperil German employment
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It's a wake-up call for Germany's job market—a brewing trade war between the US and China could force up to 25,000 manufacturing jobs at risk, according to a study by credit insurer Allianz Trade. This potential crisis arises when Chinese exports redirect to European markets, especially Germany, due to tariff disputes[1][2][5].
The study gives a point-blank warning that specific sectors in Germany are on the frontlines of this potential job massacre. Topping the list are:
- Mechanical Engineering
- Textile Industry
- Non-Metallic Mineral Products
- Electronics
- Computer Industry
- Motor Vehicles Industry
This threat represents around 0.2 to 0.3 percent of the total employment in the German industry, which stands at approximately eight million workers[1][2].
The heart of the manufacturing sector and regions such as Upper Franconia, Tubingen, and Freiburg are most exposed, with sectors like machinery and equipment estimating potential losses of 13,000 to 19,000 jobs. The non-metallic mineral products sector is at risk of losing 1,200 to 1,800 jobs, and the textile industry could see 2,200 to 3,300 jobs at stake[1][2].
Global trade dynamics are set to change dramatically if no resolution to the tariff standoff between the US and China is reached, with around $33 billion worth of Chinese goods anticipated to flood into Germany over the next three years, causing a 2.5% surge in total imports[1][2].
In essence, the Allianz Trade study underscores significant job hazards in crucial industrial sectors in Germany, primarily related to mechanical engineering, textiles, electronics, computers, and motor vehicles, with as many as 25,000 jobs on the line due to the US-China trade dispute and the diversion of goods toward the European markets[1][2][5].
[1] ntv.de [2] rts
- The US-China trade war's impact on Germany's economy could potentially alter employment policies in specific industries, particularly mechanical engineering, textiles, electronics, computers, and motor vehicles, as these sectors may face up to 25,000 job losses due to redirected Chinese exports.
- Community and employment policies should prepare for the possible economic fallout of the US-China trade war, given the threatened loss of thousands of jobs in crucial industries such as mechanical engineering, textiles, electronics, computers, and motor vehicles, estimated at around 25,000 jobs by the Allianz Trade study.
