By Euronews
Published on
•Updated
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While European Commission President Ursula von der Leyen praised a trade agreement signed between the EU and US on Sunday as a stabilising factor «in uncertain times,» representatives of the German economy have expressed concern.
Von der Leyen and US President Donald Trump struck a tentative trade deal to avert a potentially devastating tariff war between two of the world’s largest economies on Sunday. The majority of EU exports bound for the US will be subject to a 15% tariff.
According to a statement made by von der Leyen, this also includes billions of euros in EU investments in the US, as well as the purchase of defence equipment.
Tariffs of 15% will now apply to car exports to the US, compared to the previously announced 25%. Import duties on steel are to remain unchanged at 50%.
The German economy can breathe a sigh of relief for the time being, according to Managing Director of the German Chamber of Industry and Commerce Helena Melnikov.
Melnikov said that worse has been prevented, however, «the deal has its price, and this price is also at the expense of the German and European economies.»
Wolfgang Niedermark from the Federation of German Industries was more critical. He stated that even a tariff rate of 15% would have an «immense negative impact» on Germany’s export-oriented industry.
The Federal Association of Wholesale, Foreign Trade and Service also spoke of a «painful compromise» and warned that supply chains would change and prices would rise, saying the deal will cost Germany growth, prosperity and jobs.
Federal Chancellor Friedrich Merz, who was satisfied with Sunday’s agreement, wrote on X that the deal showed it was possible to «avert a trade conflict».
However, a review of Trump’s actions to date raises doubts about the reliability of the agreement and the US president’s words.
In an interview with the Funke media group, Michael Hüther, director of the Institute for the German Economy, said that concerns remained as Trump had never completely taken tariff threats off the table.
