The German Industry Association (BDI) has sharply criticized the tariff agreement reached by European Commission President Ursula von der Leyen and US President Donald Trump, calling it a “fatal signal“ for the economies of both countries.
“The agreement is an inadequate compromise and sends a fatal signal to the closely intertwined economies on both sides of the Atlantic“, the BDI was quoted as saying by the DPA news agency. The industrialists noted that “a further escalation of the situation has been avoided for now“ and this is “the only positive aspect of this agreement“.
As the union pointed out, the main thing is for the agreement to become binding. Companies on both sides of the Atlantic need to plan for supply chain security and investment, the BDI believes.
The German Foreign Trade and Wholesale Association (BGA) called the tariff agreement a “painful compromise“.
“The additional tariff is an existential threat for many of our traders“, the BGA said, quoted by the DPA news agency. Even if there is initial certainty about trading conditions, supply chains will change and prices will rise, the association believes.
The agreement with the US will cost Germany prosperity and jobs, the BGA concluded.
In turn, German Vice Chancellor and Finance Minister Lars Klingbeil expressed satisfaction with the tariff agreement. “We have always strived for a negotiated agreement. Now that has been achieved and that is good“, said Klingbeil.
“I remain fundamentally convinced: tariffs are hurting the economy on both sides of the Atlantic. We need low tariffs and open markets. We continue to rely on good trade relations. To do this, we will develop new global partnerships together with the United States“, said the minister, adding that the conflict showed the need for a more independent positioning.