'Inflation day': How Germany is responding to the latest round of US tariffs
Standing in the White House gardens on Wednesday flanked by American flags, US President Donald Trump made a statement the world had been waiting with bated breath for.
Though the White House had signalled a spate of new tariffs in recent days, it was unclear who they would primarily target, and how high the slew of taxes would be.
As it turned out, Trump spared few corners of the earth - including
uninhabited regions of Antarctica
- but reserved some of the harshest tariffs for China and the European Union.
"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said, adding that the highest tariffs would be imposed on "the nations that treat us badly".
While a 10-percent tariff will be applied on all foreign goods, the rate for the EU will be double, at 20 percent, he announced.
'Liberation Day'
Trump's Wednesday statement was the latest in a set of aggressive measures targeted at the EU and Germany. On Thursday,
25 percent tariffs on foreign cars
also went into effect, with auto parts due to be hit by May 3rd - a major blow to the German car industry.
He had previously announced 25-percent tariffs
on steel and aluminium imports
. Germany, the largest steel producer in Europe, exported a million tonnes of steel to the US last year.
For both industries - and most others in Germany - the US represents the biggest and most important export market. Experts have warned that barriers to trade could lead to higher costs and the dismantling of jobs in these sectors.
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In an interview with Fox News at the end of March, Trump's trade advisor Peter Navarro claimed that countries like Germany had turned the USA into "colonies".
This was the yoke that the Americans had to free themselves from on the country's so-called "Liberation Day".
READ ALSO:
Germany's inflation falls in March but trade conflicts cloud horizon
What are German politicians saying?
Speaking to press on Thursday, outgoing Chancellor Olaf Scholz (SPD) described the tariffs as "fundamentally wrong".
"There will only be losers," Scholz emphasised. "This is an attack on a trade order that has created prosperity all over the world, a trade order that is essentially the result of American efforts."
Meanwhile, German Economics Minister Robert Habeck warned that "US tariff mania" could "drag countries into recession and cause massive harm worldwide."
"For consumers in the US, the day will not be 'Liberation Day' but 'Inflation Day'," he said, referring to Trump's moniker for April 2nd.
However, the Green Party politician said he supported Europe's desire to initiate talks.
Greens Economics Minister Robert Habeck holds a press conference in Berlin after the announcement of sweeping tariffs on German imports to the US. Photo: picture alliance/dpa | Kay Nietfeld
"We have always pushed for negotiations, not confrontation," Habeck explained. "It is therefore good that the European Commission is continuing to aim for a negotiated solution with the USA. There is still some time left."
Speaking at a press conference on Thursday, the outgoing Economics Minister suggested that the EU could retaliate against the US with tariffs on tech products.
"Everything is on the table,"
he told a press conference. "The big tech companies have an incredible dominance in Europe and are largely exempt from European taxes."
READ ALSO:
'Chaos is being created' - Europe hits out at Trump's tariffs
What are key industries saying?
Much like the previous tariff announcements, Trump's latest trade blow has sparked anger and bewilderment within the business community.
Leading industry federation BDI said the taxes were "an unprecedented attack on the international world trade system, free trade and global supply chains".
"The justification for this protectionist escalation is not comprehensible," said Wolfgang Niedermark, a member of the group's executive board. "It threatens our export-oriented companies and endangers prosperity, stability, jobs, innovation and investments worldwide."
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Leaders from Germany's struggling auto industry were also quick to speak out on Thursday.
READ ALSO:
How will Trump's car tariffs impact Germany?
The latest tariffs will "only create losers", the German auto association (VDA) said in a statement. "The EU is now called upon to act together and with necessary force, while continuing to signal its willingness to negotiate."
Pointing to the effects of the new taxes, the auto lobby said it would be a "considerable burden and challenge" for the global car industry and affect job prospects and unemployment.
A general view of the entrance of the commercial vehicle plant of German car manufacturer Volkswagen (VW). Photo: Ronny Hartmann / AFP)
However, the German chemicals industry - which relies heavily on exports to the US - took a softer line, urging the EU "keep a cool head" and warning that "a spiral of escalation would only increase the damage".
"We regret the decision of the US government," the Association of the German Chemical Industry (VCI) said in a statement, adding that the EU must "remain flexible in its response" to the tariffs.
"Our country must not become a pawn in an escalating trade war," the association said. "The goal must be a mutually fair solution -- for Europe and the US. The United States is and remains a central trading partner for Germany."
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What is the media saying?
In the hours after Trump's announcements, commentators in the German media lined up to tear apart the tariffs.
"Instead of free trade, America is now focussing on tough protectionism, and this U-turn has the potential to plunge the global economy into severe turbulence," seethed Karl Doemens in the RND.
Writing in the Morgenpost, Peter DeThier noted the fact that, in alienating key partners, "the president has remained true to his convictions".
"As is so often the case, however, he is not thinking about the consequences and is not prepared to listen to his most competent advisors," DeThier added. "This could now have serious consequences, both for the USA and for Europe and the global economy."
US President Donald Trump delivers remarks on reciprocal tariffs as US Secretary of Commerce Howard Lutnick holds a chart during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2nd, 2025. Photo: Brendan Smialowski / AFP
Meanwhile, financial newspaper
Handelsblatt
slammed the "completely abstruse arguments" Trump has used to justify his tariffs, adding: "The USA's trading partners aren't using the country - quite the opposite."
According to Fabian Fellmann in the
Süddeutsche Zeitung
, Trump's motivation is simple: "He wants to cause as much chaos as possible."
"He acts like a mixture of solo entertainer and autocrat, imposing tariffs based on emergency legislation, circulating different variants for days before committing himself at the last minute," Fellmann wrote in an op-ed on Thursday morning. "He considers it a sign of strength to be able to unsettle everyone else."
READ ALSO:
What do Trump's steel and aluminium tariffs mean for Germany?
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As Fellmann points out, the president's move effectively ends the era of free global trade as we knew it, pushing US tariffs up to a level not seen since the 1930s.
"Trump said on Wednesday that the tariffs at the time had been a success," he wrote. "In reality, the USA exacerbated its recession and choked off international trade, other countries imposed counter-tariffs and the global economic crisis took its course.
"This was followed by the Second World War."
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