‘1930s are back’: German economists warn Donald Trump's reciprocal tariff barriers reflect World War-2 era

As the group considers its retaliation reaction while keeping an eye on US tech titans, leading economists said Thursday that US President Donald Trump's 25% reciprocal tariffs on German auto imports from the European Union may reinstate trade barriers from the pre-World War II era.

Trump's move was denounced as "fundamentally wrong" by German Chancellor Olaf Scholz, who also suggested that the EU may strike back by focusing on American IT firms.

Scholz stated, "This is an attack on a trade order that has produced prosperity worldwide, a trade order that is fundamentally the product of American efforts." Similar retaliation was also alluded at by German Economy Minister Robert Habeck on Thursday, who stated that all possibilities were open. He pointed out that "the large tech companies have an amazing dominance in Europe and are largely exempt from European taxes."