The German government has issued a strong warning in response to a newly announced tariff threat from former U.S. President Donald Trump. Finance Minister and Vice-Chancellor Lars Klingbeil, in an interview with “Süddeutsche Zeitung”, stated that Trump’s proposed tariffs “know only losers” highlighting their potential to negatively impact the U.S. economy as much as, if not more than, businesses in Europe. He urged for a de-escalation of the trade conflict and emphasized the need for continued, serious and targeted negotiations between the European Union and the United States.
The government maintains a firm stance, however, indicating a preparedness to take decisive countermeasures should a fair negotiation prove unsuccessful. Klingbeil stressed the importance of protecting European jobs and businesses, emphasizing that contingency plans for such measures must continue to be developed. “Our hand remains extended, but we will not agree to everything” he stated.
Beyond the immediate response, Klingbeil announced plans to further cultivate trade relationships with other nations. This diversification of trade partnerships, he explained, will be a key topic of discussion at the upcoming G20 finance ministers meeting in South Africa, underscoring a commitment to upholding free and rules-based trade on a global scale. Trump’s announcement, made via a letter to the EU Commission, proposes tariffs of 30 percent on all goods originating from Europe, set to take effect from August 1st.