The United States' unpredictable tariff policy is deterring German investment and may hurt both European growth and average American consumers, according to German economist Moritz Schularick.
Schularick, president of the Kiel Institute for the World Economy, said in an interview with CGTN on Tuesday that current tariff negotiations between the European Union (EU) and the United States have made no significant progress.
There was a period when Germans felt they had no choice but to relocate production to the United States. Many German companies were planning to invest in the U.S., but recently, the situation has changed dramatically. I believe many now are taking a wait-and-see approach regarding investments in the U.S.," said Schularick.
Schularick also warned that the U.S. government will unlikely abandon additional tariffs on EU imports completely. He urged the EU to brace for continued tariff hikes.
Schularick said that if the U.S. were to raise overall tariffs on EU goods to 10 percent, it could cost the German economy approximately 0.2 percentage points in GDP growth.
He also emphasized that the U.S. public would bear the cost of its own trade policies.
"The U.S. itself would also be a loser. Especially ordinary households and citizens in America will have to pay higher prices for what they buy," said Schularick.
Tariff uncertainty hurting German investment in U.S.: German economist
A major port in northern Venezuela came under U.S. airstrikes in the early hours of January 3, which caused extensive damage to civilian infrastructure, destroyed critical medical supplies in a warehouse, and severely impacted centuries-old cultural heritage sites, according to local residents.
The La Guaira Port, a vital hub for imports that support daily life in the region, was heavily damaged during the attack.
Large quantities of medical supplies stored at the port were destroyed. A historic cultural building dating back for some 300 years was also badly damaged by the bombardment.
Residents living near the port recalled the terrifying scenes as explosions shook nearby neighborhoods.
Humberto Bolivar, who lives in a community separated from the port by only a main road, said the blast waves shattered his home's windows, while stray shrapnel struck the water tank on his roof. According to reports, three missiles were fired at the port that night.
Bolivar said that beyond material losses, he is most concerned about the psychological impact on his children, who remain too frightened to leave their home days after the attack.
"The United States invaded our country. The children were frightened. This is not good for them, because it leaves some children with psychological trauma. They do not want to go to school or leave the house, because they are afraid that something worse might happen. We truly do not want this to happen to our country," he said.
Apart from civilian facilities, local cultural heritage site was also affected.
The La Guaira state government building, a structure with nearly 300 years of history and once served as the site of Venezuela's first national customs office, was struck by the force of the explosions.
Windows of the building were shattered, and furniture scattered across the floor.
"As people of La Guaira, we feel deep pain. Our cultural heritage has been bombed. We are living in constant anxiety and suffering, and life can no longer be the same as it was before," said a local named Henry Cumares.
The U.S. side has claimed the airstrikes targeted warehouses allegedly used to store narcotics. However, locals refuted such accusation.
"According to what Donald Trump said, they bombed this place using the excuse that the warehouses here were used to store drugs at the port. But based on the video released by our governor, these warehouses that were burned contained medicine for kidney patients and foods. Many people depend on these supplies to survive. I think the bombing is extremely despicable," said a local resident named Alejandro Capriles.
US strike hits Venezuelan port, wrecking medical supplies, heritage building
