Published Date: 07.04.2025 13:24 / Politics

Germany Rejects U.S. Tariff Logic

Germany Rejects U.S. Tariff Logic

German Economy Minister Robert Habeck strongly criticized the United States’ new 20% tariff policy on Monday, calling the reasoning behind the tariffs “nonsense.” Speaking to reporters, Habeck argued that the way the tariffs are calculated—primarily based on trade deficits—is flawed and reflects a “wrong estimation” of global economic dynamics. He asserted that the European Union is actually in a strong position, and it is the U.S. that finds itself under pressure due to its own economic strategy under President Donald Trump.

Habeck emphasized the importance of EU unity in the face of Washington’s aggressive trade policies. He warned against member states attempting to secure individual exemptions, noting that previous such efforts had failed and only weakened the bloc's collective position. “We must respond together,” he stressed, positioning the EU as a cohesive front in upcoming negotiations.

The German minister also took a swipe at Elon Musk, who recently expressed a desire for a “zero tariff situation” between the U.S. and Europe. Habeck dismissed the comment as “a sign of weakness and maybe of fear,” implying that Musk’s companies could be facing challenges due to decisions made under his leadership. “His companies are going to crumble because of the mess he has made,” Habeck remarked, underscoring broader concerns over U.S. economic confidence.

These comments add to the growing tension between the EU and the United States following the Trump administration’s tariff hike, which has triggered a series of critical responses from European officials. As the EU prepares to vote on a package of countermeasures in the coming days, leaders like Habeck are pushing for a united and firm stance to safeguard European industries and trade relations.

The escalating dispute marks another chapter in the transatlantic trade conflict, with both sides increasingly entrenched in their positions. The EU’s response, expected to be formalized in the coming week, could set the tone for future interactions between Brussels and Washington, especially as global economic conditions remain uncertain.