U.S. politicians from the south condemn proposed tariffs as disastrous - Push for a negotiated agreement - US tariffs pose a catastrophe, according to Söder; urges for a resolution
In the heart of ongoing trade negotiations between the European Union (EU) and the United States (US), the potential implementation of a 30% tariff on EU imports by the US, as announced by former President Trump, looms large. This move, aimed at addressing perceived trade imbalances and a significant trade deficit, is seen as a national security threat by the US administration.
In response, the EU has taken a diplomatic stance, suspending planned retaliatory tariffs on US goods. This move signals openness to dialogue and a desire to reach a trade agreement before the end of the month. EU leaders, including European Commission President Ursula von der Leyen, have emphasized a preference for negotiation over escalation, though they have prepared countermeasures should the talks fail.
The situation is particularly significant for German industries such as automotive, chemical, and mechanical engineering sectors, which are heavily integrated into transatlantic trade. These sectors are vulnerable to the high tariffs, which could severely impact German exports, disrupt supply chains, and increase costs, potentially harming their competitiveness in the global market.
German leaders, including Friedrich Merz, have advocated for a calm and measured approach to the negotiations, underscoring the importance of stability in trade relations. One such leader is Bavarian State Premier and CSU leader Markus Söder, who has warned of automotive suppliers cutting jobs due to the decision on the internal combustion engine.
Söder has urged the EU Commission to intensively use the next two and a half weeks to reach an agreement with the US. He believes that the implementation of these tariffs would lead to a significant weakening of German industries and sees the tariff increases threatened by Trump as a catastrophe for the German economy.
Söder's focus on priority sectors in the potential US-EU deal includes the automotive industry, which forms a significant part of the German economy. He believes that instead of fighting, the EU and US should aim to find a deal. He emphasizes the need for a quick deal, as he believes a lengthy, complex negotiation process won't work.
Söder also demands more openness in the EU for internal combustion engines to protect the automotive industry. He believes the negotiations should not be typical EU-bureaucratic, with thousands of pages, hundreds of rules, and endless dragging out. Instead, he advocates for a clear stance "pro Auto" from the EU.
Intensive negotiations are taking place behind the scenes between the EU and the US. The EU's approach balances readiness to implement countermeasures with a strong preference for achieving a negotiated and sustainable resolution to avoid damaging ongoing economic ties. As the deadline approaches, the stakes are high, and a swift resolution is crucial for maintaining economic stability and protecting key industries.
- Despite the looming threat of a 30% tariff on EU imports by the US, EU leaders, such as European Commission President Ursula von der Leyen, are advocating for negotiation over escalation in ongoing trade negotiations.
- The implementation of high tariffs could severely impact sectors like automotive, chemical, and mechanical engineering in European countries, potentially disrupting supply chains and increasing costs.
- In light of this, German leaders like Markus Söder are urging the EU Commission to reach an agreement with the US in the remaining two and a half weeks, as they see the tariff increases threatened by the US as a catastrophe for the German economy.
- Söder's focus in the potential US-EU deal includes prioritizing the automotive industry, which forms a significant part of the German economy, and advocating for a clear and straightforward approach instead of a typical EU-bureaucratic, complex negotiation process.
