The German Industry and Trade Association (DIHK) has called on the European Commission to take a proactive approach in response to the looming threat of a trade war, following the US presidential election.
According to DIHK’s chief executive, Helena Melnikov, the swift implementation of tariffs against the three largest US trading partners demonstrates the need for the EU to prepare for similar actions. “We cannot wait and see what might happen next. We should act now” Melnikov said. “That means for the European Commission to negotiate with the Trump administration on trade issues and explore a win-win situation.”
Germany’s top trading partner, the US, is home to over half a trillion euros in German investments, with more than a million jobs in both countries dependent on successful cooperation, Melnikov noted. Moreover, the US tariffs on imports from Canada and Mexico would not be without consequence for German companies. “In Mexico alone, there are over 2,100 German companies, mostly supplying the US market and likely to be significantly impacted by the tariffs. The automotive industry, in particular, often sees goods pass through the North American market multiple times before reaching their final destination” Melnikov added.