As the deadline for the tariff truce approaches on July 9th, concerns are mounting regarding a potential escalation in trade relations with the United States. Arndt G. Kirchhoff, President of the Association of Employers’ Associations in North Rhine-Westphalia, has cautioned against a spiraling cycle of tariffs and retaliatory measures.
In a recent commentary for “Handelsblatt”, Kirchhoff emphasized the need for European strategizing focused on what the continent can independently offer, advocating for a principle of reciprocity in dealing with the conflict. He underscored the significant stakes involved, highlighting the potential impact on both Europe and the U.S.
Kirchhoff is scheduled to meet with European Commission President Ursula von der Leyen this Wednesday, alongside a delegation of a dozen CEOs from prominent companies, led by North Rhine-Westphalia’s Minister-President Hendrik Wüst. The group aims to discuss strategies for navigating the complex situation.
Acknowledging the difficulty of the challenge facing Europe, Kirchhoff stressed the imperative of a unified European front. He warned against fragmentation amongst member states and diverse industries potentially affected by tariffs. He argued that erecting a trade barrier between Europe and the U.S. would ultimately be unfavorable for President Trump, particularly considering the impact of increased prices on consumers.