As the deadline for the tariff truce approaches on July 9th, concerns are mounting over the potential for escalating trade tensions with the United States. Arndt G. Kirchhoff, President of the Association of Employers’ Associations in North Rhine-Westphalia, has cautioned against a spiraling cycle of tariffs and retaliatory measures, warning that such a development would be detrimental to all parties involved.
In a commentary published in the Handelsblatt, Kirchhoff emphasized the need for Europe to focus on developing its own offerings while adhering to a principle of reciprocity in trade relations. He stressed that a significant amount is at stake for both sides in the current dispute, including the United States.
Kirchhoff is scheduled to meet with European Commission President Ursula von der Leyen this week, alongside a delegation of a dozen CEOs from prominent companies, led by the Minister-President of North Rhine-Westphalia, Hendrik Wüst. This meeting aims to discuss potential strategies for navigating the sensitive trade situation.
Recognizing the complexity of the challenge facing Europe, Kirchhoff underscored the critical importance of a unified approach. He cautioned against fragmentation amongst member states and various industries that may be disproportionately affected by tariffs and counter-tariffs. He argued that erecting trade barriers between Europe and the U.S. would ultimately prove disadvantageous to U.S. President Trump, particularly given the impact of increased prices on American consumers.
