The analysis by the IFO Institute for Economic Research indicates that President Trump’s new tariffs could significantly reduce U.S. exports, especially to Canada, Mexico, and China. If the affected countries retaliate, U.S. exports could fall by 22 percent. Canadian exports would decrease by 28 percent, while Mexico would experience a decline of 35 percent. China would be the least affected with an export drop of 3.8 percent, as it can redirect exports to other markets. German exports would slightly increase by 0.5 percent.
Tariffs may cut US exports by 22% if others retaliate.
