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Amid escalating trade tensions between the US and Europe, the German government has rejected the idea of a boycott of US goods, stressing the importance of partnerships with Washington. Meanwhile, US President Donald Trump continues to impose customs restrictions, which may provoke retaliatory measures from the EU, Global Banking and Finance writes .
Berlin against confrontation
German government spokesperson Steffen Gebestreit said on Wednesday that Germany is committed to maintaining stable economic ties with the United States, despite growing calls for economic sanctions in response to the White House’s actions.
“We are interested in good relations with the United States, including trade relations. We are doing everything we can to maintain them,” Gebestreit said.
His statement came after the head of the German Federation of Wholesale and Foreign Trade (BGA), Dirk Jandura, criticised the idea of a boycott of US goods, calling it a “wrong step” that could lead to trade escalation.
“Instead of resorting to boycotts and customs wars, we should focus on dialogue about the future of transatlantic trade relations,” Yandura said.
Germany’s record trade surplus causes discontent in Washington
According to the Federal Statistical Office of Germany, the country’s trade surplus with the US last year reached a record 70 billion euros. This was one of the reasons for the Trump administration’s tougher stance, which accuses Berlin of unfair trade practices.
Nevertheless, some European initiatives, such as the popular “BuyFromEU” forum on Reddit, which has almost 190,000 users, are trying to promote European brands as an alternative to American goods.
Tesla is losing ground in Europe
Tesla is one of the companies feeling the effects of the cooling of relations. Its market share in Europe continues to decline due to increased competition, slower economic growth, and the political ties of the company’s owner, Elon Musk, to right-wing movements in the US and Europe.
Germany’s diplomatic efforts
To prevent a full-blown trade conflict, German Finance Minister Jörg Kukis will visit Washington this week for talks with representatives of the International Monetary Fund (IMF), the World Bank and US officials.
Whether Berlin and Brussels will manage to avoid a new transatlantic trade war is a question that will soon become a key issue in the EU-US negotiations.
