Germany pushes for pragmatic deal in face of looming US tariffs

Germany’s Economy Minister Katherina Reiche on Saturday urged the European Union to adopt a pragmatic approach in its ongoing trade talks with the United States, as tensions rise over potential US tariffs.

US President Donald Trump announced plans to impose 30% tariffs on goods from both the European Union and Mexico starting August 1, intensifying pressure on two of the country’s largest trade partners.

“In the time that remains, the EU must negotiate a pragmatic solution with the United States,” Reiche said in a statement. “A practical and swift resolution is essential.”

Germany’s main industrial lobby echoed the urgency. The Federation of German Industries (BDI) warned that Trump's tariff threat should serve as a “wake-up call” for industries on both sides of the Atlantic.

“A trade conflict between two such closely linked economic zones would damage recovery, stifle innovation, and erode trust in international cooperation,” said BDI board member Wolfgang Niedermark.

The BDI urged the German government, the European Commission, and the US administration to act swiftly to avoid further escalation.

The United States is Germany’s largest trading partner. With the threat of tariffs looming, German exports to the US dropped by 7.7% in May to €12.1 billion ($14.2 billion)—their lowest level since March 2022, according to recent government figures.