Germany's Finance Minister Warns: Trade Disputes Hit Every Side

Germany's finance minister, Christian Lindner, has a clear message: if the U. S. starts a trade war with the European Union (EU), Germany is ready to fight back. Speaking at the International Monetary Fund's annual meeting in Washington D. C. , Lindner said that trade disputes don't have winners, only losers. He warned that if former U. S. President Donald Trump wins the next election and imposes high tariffs on imports, the EU and Germany could retaliate. Lindner, from the pro-business Free Democratic Party, is in a coalition with Chancellor Olaf Scholz's Social Democratic Party. He pointed out that the U. S. 's real issue is with China, not the EU. He doesn't want the EU to be caught in the crossfire of a U. S. -China dispute.Trade is very important for the German economy. A 20% tariff from the U. S. could hurt Germany's gross domestic product (GDP) in the coming years. This is according to a study by German economic institute IW. The U. S. has become a bigger trading partner for Germany since 2021, and in the first half of 2024, trade with the U. S. was even more than with China. Tensions between the U. S. and China, and the EU and China, have been rising. Both the U. S. and EU have put higher tariffs on some Chinese goods. China has also announced temporary higher tariffs on some EU imports. There are ongoing probes and investigations into each other's trade practices.