Germany is likely a prime target of the tariffs U.S. President Donald Trump is expected to launch against the European Union, warns German Economy Minister and Green Party leader Robert Habeck. Habeck, who is running for chancellor for his party during a hotly contested national election campaign, has already seen the country face an economic downturn under his stewardship.
Habeck said at a rally in Munich that it is a “thorn in Donald Trump’s side” that Germany has the largest trade surplus of any EU state with the United States. He said that while tariffs will hit all of Europe, Germany face some of the most severe consequences.
The Green economy minister also said that Trump was “obsessed” about the number of German cars on the streets of New York. Habeck said the way to counter American tariffs was through greater European integration.
Trump could destroy Germany’s economy, warns one Polish news outlet. Tariffs are already expected to shave tens of billions off German GDP. https://t.co/HhvDdin1Od
— Remix News & Views (@RMXnews) November 12, 2024“No matter what the next German government wants to do, it must do it in a European way,” he said.
The issue of American tariffs on Europe has left world leaders in fear, and the topic has dominated concerns about the world economy over the next year.
In another interview a week ago with French media, Habeck suggested higher taxes for American tech companies like Google, Amazon and Meta.
“There is a saying that data is the new oil,” said Habeck. “If you follow that, we are currently handing over a lot of it to American and other large corporations without them paying for it.”
🇩🇪 JUST IN: Police raided a German pensioner's house and arrested him after he retweeted a meme of Green Economy Minister Robert Habeck, which described Habeck as an “idiot,”
The meme has been recorded as a “politically motivated right-wing crime.”
On Tuesday, police officers… pic.twitter.com/BGQLSQVBd8
— Remix News & Views (@RMXnews) November 14, 2024Regarding how the EU would react to tariffs, he responded, “We have been in close contact with the EU for a long time and are preparing possible scenarios. We are prepared.”
There is a clear trade imbalance between Europe and the U.S., and Trump is betting that tariffs will help offset this imbalance. According to Statista, in October 2024, there were €47.9 billion of European goods exported to the USA, but Europe only imported €27.6 billion worth of goods from the U.S., resulting in a trade imbalance of €20.3 billion in favor of the EU.
Habeck’s center-right rival, Friedrich Merz, of the Christian Democratic Union (CDU) is striking a different tone on the issue of tariffs, saying Trump is “very predictable.”
“Donald Trump is doing what he says he is doing. I think we can expect a lot more clarity on that in the coming weeks and months,” he said.
He noted that the tariffs may be a form of pressure that could benefit Europe, including forcing EU members to reform their defense capabilities.
“In this respect, it is also an opportunity for us to do the right thing,” said Merz.
