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FRANKFURT – German Chancellor Olaf Scholz has strongly criticized the new US tariffs, calling them “fundamentally wrong” and warning that the European Union is prepared to retaliate. The tariffs, announced by US President Donald Trump, target a wide range of imports and threaten to destabilize global trade, with tech companies and German automakers particularly in the crosshairs.
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- Context & Background – Why is This Happening?
The US has unveiled sweeping new tariffs under the leadership of President Donald Trump, which target both allies and adversaries. Scholz’s comments came a day after Trump introduced measures that challenge the established global trade system. Germany, Europe’s largest economy, stands to be heavily affected by these tariffs, especially with the US being its largest export market. - Impact on Businesses & Individuals – Who is Affected?
German exports to the US—especially cars, chemicals, and high-tech products—are at risk due to the new duties. The tariffs include a 25% import tax on vehicles, which could severely impact companies like Volkswagen, Mercedes-Benz, and BMW, all of which rely heavily on the American market. Additionally, US tech companies operating in Europe, such as Apple, Amazon, and Google, may face significant challenges as the EU is considering new taxes on these giants. - Government & Expert Reactions – Diverse Perspectives
Chancellor Scholz expressed concern that these tariffs could disrupt the international trade order, a system that has fostered global prosperity. Germany’s Economy Minister Robert Habeck has warned that the tariffs could push countries into recession and severely damage worldwide trade. The German business community has lined up in opposition, with leading groups, including the BDI, denouncing the duties as a threat to stability and prosperity. - What’s Next? – Future Outlook
The EU is already preparing to retaliate, with discussions about targeting US tech firms gaining traction. France has mentioned specific plans to go after online services, signaling that the EU may soon impose taxes on American tech titans. If negotiations with the US government fail, the European bloc is ready to respond with “decisive and strong” measures. Both sides are on a collision course, and the global economy may face significant disruption if tensions escalate.
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