German energy and industry sectors worried about “destructive US trade policy”

German energy and industry representatives have expressed concern over the new tariff announcements by US president Donald Trump, reported energate messenger. “We are concerned about the increasingly destructive trade policy of the USA,” said Wolfram Axthelm, managing director of wind energy association BWE.

Wolfgang Große Entrup, managing director of the German Chemical Industry Association (VCI) said the US president had “dealt the global economy another low blow”, and warned against further escalation. A spokesperson from steelmaker Thyssenkrupp told energate that it was too early to make projections about the extent of the consequences. “Indirect effects will most likely materialise with a time delay,” she said.

German industry association BDI called the announcement a “protectionist escalation” which threatened the country’s export-oriented businesses and “jeopardises prosperity, stability, jobs, innovation and investment worldwide”.

Trump announced sweeping tariffs on goods from countries across the world, with the European Union facing a 20-percent tariff, set to take effect next week (9 April). Exemptions include energy products and certain critical minerals. The announcement stoked fears of a trade war and global economic downturn, drawing criticism from leaders around the world. First major responses from companies include German carmaker Volkswagen’s announcement that it would add an import fee later this month to the price of imported cars sold in the US.

Economy minister Robert Habeck said the tariffs would not only hurt international trade, but also the US itself. “For consumers in the USA, the day will not be Liberation Day, but Inflation Day,” he said. “The US tariff mania can set off a spiral that can also drag countries into recession and cause massive damage worldwide.” Chancellor Olaf Scholz said Germany and the EU continued to be ready to enter talks to prevent a trade war. The tariff decision was “fundamentally wrong,” he said, adding that “the entire global economy will suffer from these ill-considered decisions”.

Tagesspiegel Background reported that the new announcement could put liquefied natural gas (LNG) deliveries back into the spotlight. In the past, governments in Europe and America had tried to smooth tensions over issues such as trade imbalances or the contentious Nord Stream 2 gas pipeline with promises of increased LNG imports – largely owing to Trump’s deal-making approach to international relations.