Berlin, Germany – The German government does not consider US President Donald Trump’s threat of tariffs as a bluff. “We take this announcement seriously and are taking note of it” a spokesperson for the Ministry of Economics said in a statement to the German News Agency on Monday. “We view the announcement of the American President with concern, with the possibility of further tariffs being introduced.”
Economics Minister Robert Habeck (Green Party) had a meeting with EU Trade Commissioner Maros Sefcovic on Monday and also held a conference with 25 economic associations and the trade union side, which had been scheduled in advance but took on a new significance due to the announcement.
“Generally, tariffs would indeed affect the German and export-oriented economy” the spokesperson said. This would be particularly the case for the so-called reciprocal tariffs that were announced, even if the tariff rates between the EU and the US are not particularly intense. “Especially, the reintroduction of tariffs on steel and aluminum would have an impact on EU producers of steel and aluminum exporting to the US, making their exports more expensive.” On the other hand, the higher global tariffs of the US would also lead to trade diversion from other steel-producing countries, which would then seek new markets and increase price pressure.
The scenario is comparable to the approach taken by President Trump during his first term, when the US imposed tariffs on steel and aluminum against the European Union. The EU had responded with counter-tariffs and additional measures to counter trade diversion. Eventually, the EU and the US reached an agreement and the tariffs were effectively suspended, so that they did not affect German companies.
“The agreement was right and it is still right that we do not want to go down the path of high tariffs, but rather work towards preventing these measures” the Ministry of Economics said in a statement on Monday. The EU and the German government will continue to advocate for this and the EU has already prepared a response and made preparations for the worst-case scenario. “However, our goal is to prevent this from happening, as high tariffs would ultimately harm all sides and all parties involved.”
Chancellor Olaf Scholz (SPD) mentioned in a TV duel with his challenger Friedrich Merz on the eve of the announcement that the EU could “within an hour” respond to US tariffs and is prepared to do so. The German government also sees the UK as an ally in this matter, as a partner of the EU. “The UK is a partner of the EU” the spokesperson said. “If there are now concrete tariffs against the EU, then the EU economic area is the decisive point of contact. Of course, the German government and the EU will also have an exchange with the UK in this regard.