Germany has called for a “joint solution” to ease trade frictions with the US, as Donald Trump’s threatened levies on EU car exports exacerbate a growing rift between Washington and Berlin.
“Our path is clear: we do not want escalation,” German Vice-Chancellor Lars Klingbeil told reporters ahead of a meeting of eurozone finance ministers in Brussels on Monday. “The message to the Americans is clear: tariffs harm both sides,” he added. “That is why we want to achieve a joint solution.”
The comments come after Trump’s announcement on Friday that Washington would hike duties on EU cars and trucks from 15% to 25%, accusing the bloc of “not complying” with last July’s trade deal with the US.
The agreement – which imposes a 15% blanket duty on most of the bloc’s €532.3 billion worth of goods exports to the US – has been approved by the European Parliament but must still be negotiated with the European Commission and member states.
Washington is also struggling to implement the deal after the US Supreme Court struck down most of Trump’s levies earlier this year. However, the levies on cars were unaffected by the Court ruling.
The announced increase – not yet formally imposed – would hit Germany hardest, given its export-driven car industry and reliance on US demand. The Kiel Institute estimates the tariffs could slash up to €30 billion off German output in the long term. Other car-dependent economies, including Italy, Slovakia and Sweden, would also face notable declines.
The dispute comes amid broader tensions. Washington recently announced plans to withdraw 5,000 troops from Germany, a move widely seen as political retaliation following criticism from Chancellor Friedrich Merz over US policy in the Middle East.
The US president “is really angry [with] Germany… I am convinced that in this context he is also targeting specifically German car manufacturers”, said Bernd Lange, chair of the European Parliament’s international trade committee.
Klingbeil’s call for calm was echoed by other eurozone finance ministers.
“We are willing to have a deal, negotiate that deal, put that deal together in good faith, and make sure it’s applied,” said France’s Roland Lescure, whose country has traditionally been one of the most vocal critics of the trade agreement.
“Any other option is on the table if needed,” he added, while stressing that the EU’s priority is that the deal is ultimately implemented.
Nikolaus J. Kurmayer contributed reporting.
(cs)
UPDATE: This story has been updated with more comments from Lars Klingbeil.
Source:
www.euractiv.com