01/11/24

EU: German finance minister sounds alarm over potential US-EU tariff war

As published on: sharecafe.com.au, Friday 1 November, 2024.

On Friday, German Finance Minister Christian Lindner issued a warning about the dangers of a potential trade war between the United States and the European Union. Speaking at the International Monetary Fund’s annual meeting in Washington, DC, Lindner emphasized that trade conflicts inevitably lead to losses for both sides. He called for diplomatic efforts to prevent escalating tensions, especially with the upcoming US presidential election, which could bring significant policy shifts.

Lindner’s concerns stem from statements made by former US President Donald Trump, who suggested he might impose tariffs of up to 20% on various goods if re-elected. Such measures could severely impact the German economy, which relies heavily on exports to the US. In the first half of 2024, Germany’s trade with the US surpassed its trade with China.

The German finance minister also highlighted the broader geopolitical context, noting that the EU should not become a casualty of US-China trade tensions. Recent years have seen rising trade barriers between major global players, and Lindner stressed the importance of fostering a stable economic environment rather than exacerbating conflicts.

Lindner’s statements echo wider concerns among European leaders, who worry that heightened tariffs could further strain the already fragile global economy.

Tags

EU Germany US Tariff war