Trump announces tariffs: German economy on alert!

Trump announces tariffs: German economy on alert!

In a dramatic step, US President Donald Trump announced new punitive tariffs, which met with strong criticism from the German economy. This announcement is seen as another low point in already strained trade relations between the US and Europe. Dirk Jandura, President of the BGA foreign trade association, described the tariff threats as grotesque and urged a united response from the EU. Complicating the situation further, Trump said higher tariffs would come into force if a deal to buy Greenland is not reached, which could lead to an escalation in the trade dispute [Welt](https://www.welt.de/politik/deutschland/article696be9296b40895ba7f715a3/groenland-kritik-die-ankuendigung-neuer-us-zoelle-ist-grotesk-deutsche-wirtschaft-entsatz-ueber-trumps-zoll Threat.html) reports.

The new tariffs will initially be 10 percent and will rise to 25 percent from June 2024. This increase not only affects Germany, but also Denmark, Norway, Sweden, France, Great Britain and other European countries. The tariffs are seen as particularly threatening to the automotive industry, which is already suffering from severe conditions. Hildegard Müller, President of the Association of the Automotive Industry (VDA), calls for a smart, strategic reaction from Brussels and warns against ill-advised quick actions.

Harmful consequences for the economy

These tariffs not only highlight the current negotiations, but also represent a massive threat to transatlantic relations. The EU feels compelled to respond with countermeasures: It plans to impose tough sanctions on US imports worth 93 billion euros. The existing tariff surcharge of 15 percent on most EU goods, which has been in effect since August 2025, is also making the situation worse, as douana.ch notes.

According to the European Parliament, there are worrying risks to the economy and political relations on both sides of the Atlantic. There are fears that increased tariffs on a wide range of products - from cars to machinery to agricultural products - will not only make trade more expensive but also lead to inflationary pressure and supply shortages.

Transatlantic cooperation in focus

In June 2025, the European Parliament debated the impact of these tariff threats on transatlantic relations. Polish Minister for European Affairs Adam Szłapka highlighted long-standing benefits of fair trade, something that is now being put at risk by political differences. The European Commission's Maroš Šefčovič described the new tariffs as damaging to businesses and consumers, while the Committee on International Trade is considering possible counter-tariffs to counter the escalation, said europarl.eu.

For many companies, a diplomatic solution remains an essential measure to secure prosperity between the transatlantic partners and avert possible economic crises. The current situation also offers opportunities for new collaborations and innovative business models, but without a strategic response, trade relations could be damaged for years to come.