Germany’s finance minister urges swift EU-US tade deal to avoid economic turmoil

Germany’s Finance Minister Jörg Kukies has called for swift action on a trade agreement between the European Union and the United States regarding tariffs, warning that prolonged uncertainty would have negative consequences for both economies.

Speaking at the Semafor World Economy summit, Kukies emphasised the detrimental effects of global trade disruptions, which are prompting business leaders to delay investment decisions and consumers to postpone purchases, Caliber.Az reports, citing foreign media.

"The longer we wait for an agreement, the longer we allow uncertainty to persist in both our economies, and I just don’t see any positive outcome from that," Kukies said.

The minister also noted that a fast-tracked deal with the US could help mitigate the impact of upcoming GDP data for Germany, which he anticipates will not be favourable. 

Germany, Europe’s largest economy, has been in a recession since 2022, grappling with issues like energy supply disruptions from Russia, a labour shortage, and a decline in industrial output. The German economy is expected to shrink for the third consecutive year.

Earlier, in an interview with Deutschlandfunk radio on April 9, Kukies warned that a potential trade conflict between the EU and the US, triggered by Washington’s tariff measures, could push Germany further into recession.

On April 2, US President Donald Trump announced new tariffs on products from 185 countries and territories, with a 10% universal tariff taking effect on April 5 and individual tariffs following on April 9. The US also introduced a 25% tariff on all imported cars starting April 3.

However, on April 9, Trump suspended additional tariffs on several countries for 90 days to allow for trade negotiations, with a "universal tariff of 10%" applying during this period.