US Tariffs Likely to Persist: Experts Urge Germany and Europe to Boost Competitiveness
Economy / Finance

US Tariffs Likely to Persist: Experts Urge Germany and Europe to Boost Competitiveness

Following the recent US Midterm elections, Dirk Jandura, President of the BGA trade association, anticipates that Donald Trump’s current tariff policies are likely to continue. Speaking to the “Rheinische Post”, Jandura stated that the congressional voting results will not immediately alter the landscape of foreign trade. He emphasized that US presidential authority remains the dominant factor in international trade policy, allowing the president to act freely, even more so than when national political constraints are in place.

Jandura noted that Trump holds wide-ranging independent powers under existing trade laws. Furthermore, he clarified that the US protectionist trade stance is not solely the work of the MAGA movement, pointing out that many Democrats are also skeptical of free trade. He concluded that, despite the negative consequences for American consumers, Trump’s tariff policies must be expected to persist for now.

While Democrats might pursue investigations through Congress, increase political pressure, and attempt to curb the president’s legal powers, Jandura remarked that these efforts would require corresponding majorities and potentially overcoming a presidential veto. Consequently, the fundamental shift in US trade policy is expected to remain in place beyond Trump’s presidential term.

Jandura strongly urged Germany and Europe to proactively improve their own competitiveness and negotiate new free trade agreements with other global regions to ensure their economic viability. However, he admitted that a necessary turnaround in economic policy could not currently be discerned.

Separately, Rainer Dulger, President of the employers’ association, cautioned against excessive optimism stemming from the US Congressional results. Addressing T-Online, Dulger stressed that while Americans have voted, the problems facing Europe will not be solved in Washington. He stated that Europe must take charge of its own competitiveness.

Dulger maintained that the United States remains a crucial economic and security partner. He expressed a desire for increased commerce, more investment, and closer collaboration, but insisted that a truly equal partnership requires both sides to possess strong economic foundations. He added that a loss of economic weight translates into a loss of political influence.

Therefore, Dulger asserted that Germany and Europe must finally “complete the overdue homework”: massively reducing bureaucracy, easing the burden on companies, facilitating investments, and strengthening competitiveness. He argued that economic strength is the foundation upon which Europe can confidently advocate for its interests and assume greater responsibility for its own security, noting that the future strength of Europe will ultimately be determined by its own actions.