The duties announced by U.S. president Donald Trump are an unprecedented attack on the global planet trade system, and the justifications for this escalation are unclear," said Wolfgang Niedermark, associate of the board of the German Industrial Association (BDI).
U.S. president Donald Trump announced the introduction of "mutual" customs duties on imports from another countries. The basic minimum rate will be 10 percent, but the tariff will be calibrated for each country and will represent half of what the US importing companies collect. Meanwhile, EU goods will be subject to a 20% duty. Trump said it would be a "declaration of economical independence" for the U.S. and would aid usage "bilion and trillion dollars" to pay off public debt.
"The announced duties are an unprecedented attack on the global planet trade system, free trade and global supply chains. The justification for this protectionist escalation is not obvious. It threatens our export-oriented companies and threatens prosperity, stability, jobs, innovation and investment worldwide," Niedermark, quoted in a message on the union website, said.
It notes that the European economy should not become leverage for geopolitical interests and that the European Union can only act together. The BDI supports the European Commission's readiness to negociate and respond flexibly to possible proposals.
"German manufacture has always advocated fair competition, open markets and partnerships with the United States. The EU must now strengthen its alliances with another major trading partners and coordinate its consequence with them. A coordinated consequence is besides needed to counter the diversionary effects of global trade," he added.
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The German trade union calls US duties "an unprecedented attack on trade"
