On Friday, a German government official said that Germany would inform the future U.S. administration of the damage that a “spiral of tariff hikes” would cause. This comes ahead of Chancellor Olaf Scholz’s participation in the Group of 20 leaders’ summit.
“We will enter into very intensive discussions with our American partners to formulate ourselves very carefully and point out the great damage that would be caused … if we were to enter into a spiral of tariff hikes,” the official told a press briefing in Berlin.
US tariffs will harm Germany and Poland the most.
Germany foolishly closed down its energy sector to rely on Russia. Angela Merkel knew of the risks of relying on Russia and mockingly dismissed Donald Trump’s warnings. They lack common sense. That, along with other issues, such as having to compete directly with China with exports, has caused Germany’s deindustrialization since 2022.
The EU has leveled excessive punitive fines on Big Tech and other US companies. Europe levels tariffs, and the US imposes none. They would now find themselves on the other end of US tariffs.
In response, if they can’t work something out with the US, they will devalue their currency, subsidize exports, and remove taxes, and a tariff war could ensue.
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