German finance minister sounds alarm over Trump's trade tariffs impact on exports

German Finance Minister Jörg Kukies has warned that German exports to the United States could decrease by approximately 15% if US President Donald Trump maintains the recently imposed import duties. 

Kukies emphasized that these tariffs would likely lead to a significant reduction in Germany's growth prospects and could increase the risk of a recession, Caliber.Az reports, citing foreign media.

On April 2, Trump signed an executive order imposing "reciprocal" tariffs, setting a baseline 10% duty on all imports, with higher rates for specific countries, based on trade deficit figures.

For example, imports from the European Union would face a 20% customs duty under this scheme. Kukies expressed concern in an interview with German TV, saying, “That would have very significant implications, and you can't be naive. Today I spoke with the president of the IFO Institute. According to their estimates, if these duties remain in force, our exports to the U.S. will drop by about 15%, our growth prospects will be significantly reduced, and the threat of recession will increase.”

Kukies also pointed out that the risk of recession isn't limited to Germany. The United States could face economic difficulties as well, which may complicate Trump's ability to deliver on his promise of a major tax cut for US citizens.

In response to the new tariffs, Kukies urged the European Commission to not only negotiate with the US but also prepare retaliatory measures if talks fail. He also recommended that Europe strengthen its trade relations with other regions, including South America, India, Indonesia, and Malaysia. "We need to focus on diversifying and establishing trade agreements with other countries," Kukies said.

European Commission President Ursula von der Leyen also addressed the issue, expressing Brussels' desire to negotiate with Washington while preparing countermeasures in case the negotiations do not succeed.

By Tamilla Hasanova