Agency Report –
US tariff “mania” could cause “massive damage worldwide,” German Economy Minister Robert Habeck warned on Thursday, as Berlin awakened to a transformed global trade order.
Habeck’s statement came hours after US President Donald Trump’s announcement of unprecedented customs duties, including blanket tariffs of 10% on all goods imported into the United States.
As an exporting nation, Germany is set to be hit hard by the 20% tariff Trump has imposed on the European Union, which are due to take effect on April 9.
The country’s leading stock market index, the DAX, tumbled 2.3% shortly after opening on Thursday as investors pondered the consequences for Germany’s crucial automotive and industrial sectors.
But the blanket 10% tariffs on goods from all countries will have wider implications for the global economy, argued Habeck, who is also Germany’s vice chancellor.
The decision could “set off a spiral that could drag countries into recession” with “dire consequences for many people,” the outgoing minister said in Berlin.
Trade expert Lisandra Flach from the Munich-based ifo Institute said it was a “bitter day for the global economy.”
Habeck emphasized that the EU will continue to seek negotiations with the Trump administration in the coming days.
“We have always pushed for negotiations, not confrontation. That remains the right approach,” he stated.
If the tariffs do take effect, however, Habeck said that Germany and the European Union are ready to respond.
“We have the largest single market in the world. We must utilize this strength,” the minister added.
