[ad_1]
German Finance Minister Christian Lindner cautioned on Friday that the initiation of a trade war by the United States against the European Union could result in retaliatory actions. Lindner emphasized the negative consequences of trade disputes, stating that there are no winners, only losers. He expressed concerns about the potential trade policies that could be implemented if Donald Trump were to be elected as president, stressing the need for diplomatic efforts to dissuade any trade conflicts between the U.S. and the EU. Lindner, a member of the Free Democratic Party, highlighted the importance of not allowing the EU to become collateral damage in the U.S.-China trade tensions.

Lindner pointed out that the U.S.’ main trade concerns are with China rather than the EU, underscoring the economic impact that a 20% tariff on imports proposed by Trump would have on the EU and Germany. He referenced a study by the German economic institute IW which forecasted a decline in the GDP of both entities if such tariffs were imposed. The significance of the U.S. as a trading partner for Germany has been increasing, with trade turnover surpassing that of China in the first half of 2024, according to German statistics.

Tensions in trade relations have been mounting between the U.S., China, and the EU, with all parties implementing higher tariffs on various goods. The EU’s decision to impose tariffs on Chinese electric vehicles raised concerns in Germany, particularly for its struggling car industry. The IMF’s deputy managing director, Gita Gopinath, highlighted the detrimental effects of escalating trade and tariff disputes between the U.S. and China, emphasizing the costs that such conflicts could incur for all involved parties.

[ad_2]
SOURCE