The Managing Director of the Federation of German Industries (BDI), Tanja Gönner, has voiced concerns regarding the recently settled trade dispute with the United States. Speaking on the Berlin-Playbook podcast by POLITICO, she indicated that while not celebratory, the resolution avoids a potentially more damaging escalation.
Gönner emphasized that the outcome represents a considerable setback, particularly for Germany’s export-oriented economy and for Europe more broadly. “It would be entirely wrong to say that we are satisfied” she stated. The agreement is expected to incur significant financial costs, resources that would be preferable allocated elsewhere. She also cast doubt on any long-term benefits for the U.S. side, suggesting that ultimately, American consumers will likely experience price increases.
Despite the criticisms, Gönner acknowledged positively that the crisis served to maintain unity within Europe. She views the prevention of further escalation as a crucial step, questioning whether a return to the pre-existing trade conditions would have been possible. She underscored that the resolution does not establish a clear victor in the dispute.
While recognizing the need for stability and reliability moving forward, Gönner expressed skepticism about the possibility of further negotiations with the U.S. president. Her focus now lies on securing predictability and preventing the imposition of additional tariffs. Specifically, she stressed the importance of the agreement covering the pharmaceutical and semiconductor industries, noting that significantly higher tariffs had been previously announced.
Gönner called for greater clarity in the written terms of the agreement and emphasized the critical need for Europe to bolster its competitiveness. “We have some homework to do” she concluded, highlighting the need for reduced bureaucracy and strengthened economic resilience.
