The German government today condemned the new tariffs announced by U.S. President Donald Trump, calling them an "economic error" and warning they represent "an attack on the global trading system."

Key Statements:

• Outgoing Chancellor Olaf Scholz stated in Berlin:

  • "The U.S. tariffs will harm the entire global economy—businesses and consumers worldwide, including in the United States itself."

  • "We support negotiations between the EU and the U.S. to prevent a transatlantic trade war. We stand for cooperation, not confrontation."

Economic Impact:

• Germany, Europe’s largest economy, will be among the hardest hit by the new U.S. tariffs.

• The measures threaten key German exports, particularly automobiles and industrial machinery.

• Experts warn of higher consumer prices, supply chain disruptions, and potential job losses in both the EU and U.S.

Next Steps:

• Germany will push for a coordinated EU response, including possible WTO challenges and targeted countermeasures.

• The EU is expected to seek negotiations with Washington to avoid further escalation.

Market Reaction:

• German automaker stocks (Volkswagen, BMW, Mercedes) fell sharply following the announcement.

• The euro weakened against the dollar amid trade uncertainty.