Tariff wars and their consequences: Experts discuss global trade issues

Tariff wars and their consequences: Experts discuss global trade issues

On June 18, 2025, the event “Present Analysis at Lunchtime” will take place in room 102 of the Gräfin Dönhoff Building at Europaplatz 1 at 1 p.m. This is done by Dr. Sonja Priebus moderates and offers an in-depth analysis of the current challenges in international trade under the topic "Global trade war? International politics and capitalism in crisis".

The speakers at this event are Prof. Dr. Jürgen Neyer, an expert in European and international politics, and Prof. Dr. Sascha Münnich, who specializes in the sociology of economics. The discussion will cover various aspects of the current trade landscape, including the tariff wars and increasing protectionism seen particularly between the US, China and the EU. These developments have far-reaching political and socio-economic dimensions that are also important for national economic and trade policy.

Protectionism and its effects

In recent years the world has witnessed a worrying trend towards protectionism. Jürgen Matthes from the German Economic Institute notes that this trend has gained momentum since the financial crisis of 2008/2009. While tariffs have been gradually reduced since the 1950s, the US government under President Donald Trump has initiated a reversal process that is increasing tariffs again. This approach has not only strained trade relations between different countries, but also has a significant impact on global production networks and value chains.

The Global Trade Order, established after World War II, was intended to reduce tariffs and avoid inequality. The World Trade Organization (WTO), founded in 1994, sees its mission as promoting the liberalization of world trade, but it has no control over the imposition of tariffs. According to WTO rules, tariffs can only be increased in cases of national security threats.

The impact of tariffs on the global economy

The situation is further complicated by the fact that larger countries are generally better able to manage customs disputes than smaller ones. While tariffs traditionally serve to protect domestic suppliers and generate revenue for states, they can also lead to higher consumer prices and disrupt supply chains. Economists warn that these measures often generate backlash that can end in trade wars.

Emerging economies have increasingly started imposing tariffs and moving away from free trade. China's accession to the WTO in 2001 led to the country establishing itself as the "workbench of the world". The fact that the US trade balance is negative shows that there is a need for action in this area. Tariffs could play a supporting role in select industries, such as the US solar industry. The concept of “reshoring” highlights the trend of bringing industries back, but this comes with challenges, particularly due to complex global supply chains.

The event on June 18th will also discuss the political constellations that may influence the current trade escalations. The option to participate online is also offered, allowing for broader participation in this important topic. It remains to be seen how the global trade war will develop and what solutions will be found to defuse the existing conflicts.

Further details can be found in the reports from European University, Deutschlandfunk and WTO.