Calculations for Donald Trump’s newly imposed tariffs are “nonsense”, German Economy Minister Robert Habeck has said, in a caustic assessment amid fears of a global recession.
Mr Habeck warned the US President risked destabilising the global economy in a strongly worded statement which indicates just how seriously the situation is being regarded in capitals across Europe and elsewhere. Specifically, Mr Habeck stressed the tariffs were not just economically reckless but politically damaging, with the calculations propping them up “nonsense”, according to remarks attributed by Bloomberg. He further warned incoming countermeasures being imposed by the EU “would hurt”. The tariffs, which were announced last week, primarily target key sectors including technology, automotive, and energy, sending shockwaves through the international marketplace.
The US government claims the measures are designed to protect American workers and ensure fair trade, but critics, including German officials, argue that they will only lead to higher consumer costs and retaliatory tariffs from other nations.
Global markets have reacted negatively to the announcement, with stock indices plummeting on Monday, reflecting widespread concern over the economic fallout.
The Dow Jones Industrial Average and the FTSE 100 both saw significant declines, with tech stocks hit particularly hard. Shares in major European automakers, like Volkswagen and BMW, took a noticeable dip as investors feared that the tariffs would disrupt supply chains and sales in key US markets.
Mr Habeck’s remarks come as EU leaders are scrambling to devise a coordinated strategy to counter the tariffs.
European Commission President Ursula von der Leyen has already warned that the EU is prepared to take “robust action” if the tariffs continue, suggesting potential retaliatory measures, including counter-tariffs on US goods like agricultural products and machinery.
The EU’s trade chief, Valdis Dombrovskis, has also expressed concerns that the move could escalate into a broader trade war, further disrupting global trade flows.
The tariffs have placed additional strain on the global economy, which was already grappling with the effects of the COVID-19 pandemic and the energy crisis.
While the US insists that the tariffs are aimed at protecting its economic interests, many international experts fear that they will hurt global supply chains and further stifle economic recovery.