A prominent German economic advisor is advocating for a firm stance in the escalating trade dispute between the European Union and the United States. Speaking to “Focus” magazine, Achim Truger, a member of the German Council of Economic Experts, urged the EU to prepare for a significant escalation if a resolution is not reached by the end of July.
The call comes as US President Donald Trump announced plans to impose tariffs of 30 percent on imports from the EU and Mexico, effective August 1st. While the EU Commission postponed planned retaliatory measures against US companies to early August, Truger emphasized the need for the EU to demonstrably resist perceived pressure. He suggested potential actions could include measures targeting US digital corporations.
Truger voiced concerns about the possible impact of these tariffs on the German economy. Current estimates suggest the announced 30 percent tariffs could dampen Germany’s gross domestic product (GDP) by as much as 0.5 percent. He further cautioned that the impact of a substantial government support package recently approved in Germany would be considerably lessened by the imposition of substantial tariffs. The advisor stressed the critical need for the EU to maintain credibility in international trade negotiations.
