FRANKFURT: Europe must prepare for US President-elect Donald Trump to impose hefty tariffs on its exports and stick together to combat any such measures, Germany’s economy minister said Tuesday.
Robert Habeck’s comments came after Trump said Monday he intends to slap sweeping duties on goods from Mexico, Canada and China on his first day in office.
“We have to be prepared for the fact that something similar could also happen to Europe or Germany,” Habeck, who is also Germany’s vice chancellor, told a business conference in Berlin.
On the campaign trail, Trump threatened to hit goods from across the world with higher tariffs, rattling nerves in Europe as the United States is a major destination for the continent’s exports.
The president-elect’s announcement on Monday indicates that his threats should be taken seriously, Habeck said.
Donald Trump vows to slap 25% tariffs on Mexico, Canada, 10% tariffs on China
“The EU must react to this in a united manner (and) speak together as Europe,” he said, adding that the continent’s leaders should seek dialogue before thinking about retaliatory measures.
“It must be made clear that in the end everyone loses” from tariffs, including the United States, said Habeck.
He noted that by vowing to hit Canada and Mexico with tariffs, Trump was targeting two countries with which Washington had a free trade agreement.
“The rules according to which we have aligned our economic, industrial and foreign policies are becoming increasingly fragile or are not being adhered to,” Habeck said.
Trump has in the past singled the EU out for criticism as it runs a sizeable trade surplus with the United States.
During his first term, Washington slapped tariffs on European steel and aluminium exports, prompting the EU to retaliate with levies on US goods.
Germany’s export-driven economy would be particularly hard hit by new US duties, with the central bank recently warning they could knock one percent off growth.
Comments