The President Donald Trump according to US President "The biggest of all deals" In the customs dispute with the European Union, only cautious enthusiasm triggered in Germany.
Chancellor Friedrich Merz (CDU) welcomed the agreement with which it was successful "to avert a trade conflict". However, German industry reacted much more reserved.
“The Convention is an inadequate compromise and sends a fatal signal to the tightly intertwined economy on both sides of the Atlantic,” said the Federal Association of German Industry (BDI) in Berlin. The EU accept painful tariffs.
The deal
Trump and EU Commission President Ursula von der Leyen had agreed on a basic customs set of 15 percent on most EU imports in the USA. According to the Leyen, this also applies to the cars, semiconductors and pharmaceutical products. The agreement also creates a framework for the future reduction in tariffs to other products.
“The only positive thing about this agreement is that another escalation spiral could be averted,” said the BDI. It is now crucial that the convention becomes binding. Companies on both sides of the Atlantic need planning security for supply chains and investments.
No comparison of the time before Trump
Trump, who will talk to the British Prime Minister Keir Strander about the trade agreement between the United States and Great Britain today, had the agreement as "huge deal with many countries" designated. With the customs income, among other things, the US President wants to at least partially counter-finance his expensive election promise of great tax cuts.
Federal Finance Minister Lars Klingbeil (SPD) said that a negotiation solution had been achieved "First good". The negotiation result and the effects on economy and jobs in Germany would now be evaluated in the federal government, said the Vice Chancellor. It is important that Europe defended its interests.
Klingbeil also emphasized: “Basically, my conviction remains: tariffs damage to the economy on both sides of the Atlantic. We need low tariffs and open markets. We continue to rely on good trade relationships. In addition to the USA, we will also build new worldwide partnerships.”
Trump had started the global customs conflict with its extracoles, which vary from country to country. The taxes that importers have to pay are higher despite the deals completed than before the start of the second term of trump. For example, additional tariffs of 25 percent were added to the import of cars to a total of 27.5 percent.
According to the Leyen, the reduced reduction to 15 percent is the best possible deal. “We shouldn’t forget where we come from,” she said. 15 percent should not be underestimated, but also the best that was possible.
EU Commission has "full support" of the federal government
Merz emphasized the “unity of the European Union and the hard work of the negotiators: inside has paid off.” The Chancellor thanked the Leyen and trade commissioner Maros Sefcovic. “In the upcoming negotiations on the details of the agreement, the European Commission has my full support.” It is important to work to strengthen trade relationships with the USA.
Merz added that Europe was able to maintain its core interests, even if he had wanted further relief in transatlantic trade. “Everyone benefits from stable and predictable trade relationships with market access for both sides – on this side as beyond the Atlantic, companies and consumers: inside.”
Deal with China is still pending
In the customs conflict between the USA and China, the negotiation talks continue today and tomorrow. US finance minister Scott Bessent and high-ranking Chinese representatives: inside meet in Stockholm. Among other things, the customs break is to be negotiated about an extension of the customs break that is currently still valid until August 12. The Chinese side is led by Vice Prime Minister He Lifeng.