German industry braces for impact as Trump's tariffs loom
The German press is expressing concern over a potential escalation in the trade conflict with the USA, following President Donald Trump's announcement of 25% tariffs on steel and aluminium imports. "Handelsblatt" suggests the EU should take inspiration from China, while "Die Zeit" believes Trump is fixated on tariffs.
"Will a great trade war erupt now?" ponders "Der Spiegel" on Tuesday.
According to the weekly, the scale of worry within the German economy regarding a trade war with Trump was evident on Monday at the German Ministry of Economy.
German media discuss Trump's tariffs
Robert Habeck, the head of the department, invited leading industrial and business associations to a crisis meeting, reports the weekly. According to the newspaper, at least 25 organisations representing various industries, from defence to automotive and even confectionery, participated.
"Donald Trump's announcements are particularly concerning for the German automotive industry," notes the weekly. Since the EU currently imposes a 10% tariff on vehicle imports, Trump's logic suggests that American tariffs on imports of cars from Europe should also be raised—from 2.5% to 10%.
This would have serious consequences for German manufacturers, emphasises "Der Spiegel".
The EU has a chance to stand up to Trump "only if it is united," it adds.
The economic newspaper "Handelsblatt" recalls that Trump has repeatedly depicted the EU, especially Germany, as exploiting the USA due to export surpluses. The newspaper believes Europe should learn from China.
"China reacted to the US's imposition of 10% tariffs on Chinese imports by calmly filing a complaint with the World Trade Organization and responding with retaliatory tariffs without risking escalation," it reads.
In the longer term, the newspaper stresses that Europe must show greater determination in seeking partners for free trade—in Latin America, Asia, and Africa. "Naturally, countries in these regions cannot replace the largest economy—particularly since, after Trump, an era will come where the USA remains our most important partner. But as long as the American president is so unpredictable, arbitrary, and even coercive towards partners, diversifying trade structures is not a bad idea," commented "Handelsblatt".
Once again, Germany, the largest economy on the continent, finds itself in a particularly delicate situation: Germany is much more export-dependent than its European partner countries and is in the most challenging economic circumstances in decades, pointed out "Handelsblatt".
"For the entire EU, unity is a necessary condition to stand against the increasingly unpredictable US president," it summarised.
The weekly "Die Zeit" sarcastically observed that "tariff" has become the fourth, most beautiful word in Donald Trump's dictionary after "God", "love", and "religion".
Trump has made another tariff decision
On Monday, the US announced tariffs on steel and aluminium imports will come into effect on 12 March.
The impact will be felt most by Canada, but also by countries like Brazil and the EU. According to data from the American Iron and Steel Institute, the largest steel exporters in 2024 were Canada with 7 million tonnes, Brazil with 5 million tonnes, and the European Union with 5 million tonnes, with Germany, the Netherlands, and Romania accounting for half of this.
The new rates will also cover "finished metal products" and there will be no exceptions.
"It's a big deal—making America rich again," Trump said while signing the documents. He added, "This means many businesses will open in the United States."
The European Commission considers there is generally no justification for imposing tariffs on EU exports. "We will respond to protect the interests of European enterprises, workers, and consumers from unjustified measures," the Commission declared.
