US President Trump has presented a huge customs package to massively affect imports from the EU. The EU is now planning countermeasures. EU politicians explained the procedure for a long time.
For weeks, US President Donald Trump threatened with a huge customs package. Now he has presented his plans. They are not only complex, but also unprecedented.
As Trump announced during a performance in the Rosengarten of the White House, the US government introduces new flat-rate tariffs of ten percent to imports from all countries. Depending on the trade deficit, many states should apply significantly higher penalty levies. New tariffs of 20 percent are planned for imports from Germany and other countries of the European Union to the United States.
The EU has already announced countermeasures. When and how the EU acts is still unclear. “We already finalize the first package of measures in response to the steel tariffs and are now preparing further measures to protect our interests and companies if negotiations fail,” said EU Commission President Ursula von der Leyen. The EU could not absorb global overcapacity and do not accept dumping in its markets.
What does that mean for the EU and Germany? And what could an EU reaction look like? T-online spoke to the EU trade politician Bernd Lange (SPD).
video | Trump announces tariffs of 20 percent against EU
T-online: Mr. Lange, is Germany now in a trade war after Trump’s customs announcements?
Bernd Lange: Yes, I would say that. Trump’s speech yesterday is a declaration of war. The US President has terminated the rule-based system of the world trade organization and the partnership-based cooperation. There were already the first tariffs on steel, aluminum and corresponding products, as well as on cars – now he has ignited a second stage.
Will there be a third stage?
It is difficult to predict. Trump acts completely erratic-for example, he simply calculated a 39 percent customs. This is based on a very simple calculation that is not economically valid. He also links the tariffs with so -called non -tariffs, which in our opinion are not non -tariffs, but democratically designed legislation. This is a clear affront and it is unclear what he is still planning. In the near future, for example, tariffs on medicinal products can be expected.
What does that mean specifically for us in the EU and in Germany?
Germany exports a large amount to the United States – around 57 percent of exports are eliminated to three main areas: cars, mechanical engineering and pharmacy. If, for example, 25 percent inches are raised on cars, the noticeable consequences have a noticeable consequences. Last year we exported around 750,000 vehicles from the EU to the USA – this corresponds to a volume of around 38.5 billion euros. With such tariffs, around nine billion would also be due. This has consequences for production in Germany.
Could that also cost jobs in Europe?
Certainly. Especially since it particularly affects the already crised industries. As an example: In the first steel tariffs, the export volume to the USA has halved. Certain special steels were bought further, others not. This also resulted in a noticeable price increase in the USA. We could lead to job losses or relocations – depending on the extent of the production impairments.
At the same time, it becomes more expensive in the USA because many of these products are not manufactured there.
Exactly. There will be an inflationary effect in the USA because many goods have to be imported. The prices in the USA will increase drastically.
How will the EU react to this? EU Commission chief Ursula von der Leyen has announced that one was prepared, but open to negotiations.
At the first tariffs on steel and aluminum, a list of countermeasures that will be finalized next week was developed. In mid -April we should have a complete overview of our countermeasures for the tariffs on steel and aluminum. The counter -tariffs concern industrial goods, agricultural products and textiles. As for the new announcements-both the already announced tariffs on cars and the so-called reciprocal tariffs from yesterday-you will take a closer look-a second tranche of EU measures will follow.
