Unveiling the Berlin Summit: Scholz and Coalition Chiefs Discuss US Tariffs Amidst Global Market Turmoil
Berlin Emergency Meeting: Scholz Discusses US Tariffs With Leaders of Union and SPD - European Council acknowledges Commission's move to prolong the deadline for presenting proposals for the implementation of fresh EU legal regulations.
In the heart of Berlin, top party leaders met at the Chancellery, momentarily stepping away from the coalition negotiators' round earlier in the day. The Coalition - CDU, SPD, and CSU - reconvened later in the afternoon, with Friedrich Merz, Lars Klingbeil, Saskia Esken, and Markus Söder joining the fray.
This gathering occurred against the tumultuous backdrop of plummeting stock markets worldwide. The German benchmark index Dax saw a brief 10% dip at the Frankfurt trade open, a direct consequence of President Trump's tariffs imposed midweek. These extensive import duties not only impacted trading partners but also reached virtually every product and country globally.
Ahead of the meeting, Chancellor spokesman Steffen Hebestreit warned that the stock market freefall served as a "wake-up call." He urged Germany and Europe to act "wisely" and "pertinently" to steer clear of a "trade war."
Europe offered a hand to Trump, according to EU Commission President Ursula von der Leyen, with an offer to scrap all tariffs on industrial goods on both sides, made Monday afternoon. Yet, Washington is yet to respond to this invitation.
The Tariff Squabble: A European Perspective
As of April 2025, the European Union has proposed a zero-for-zero tariff scheme for industrial goods with the United States, aiming to douse the flames of mounting trade tensions. This proposal echoes past discussions like the Transatlantic Trade and Investment Partnership (TTIP), symbolizing Europe's willingness for a mutually beneficial trade agreement[1].
In response to US tariffs on EU steel and aluminum, the EU cleared the path for retaliatory tariffs on American products such as almonds, orange juice, poultry, soybeans, steel, aluminum, tobacco, and yachts[2]. These retaliatory measures are set to be implemented between April 15 and December 1, 2025. Interestingly, the EU indicated that these tariffs could be suspended if the U.S. agrees to a fair trade resolution[2].
Just as the EU finalized its retaliatory measures, European Commission President Ursula von der Leyen suspended EU tariffs on about €20.9 billion of US exports before they took effect[3]. This action suggests ongoing diplomatic efforts between the EU and the US.
German Coalition's Response - A Work in Progress
The reactions from German coalition parties like the CDU, SPD, and CSU towards the EU's tariff offer and the current trade standoff with the U.S. are not fully documented in available sources. However, German parties, being part of the broader EU landscape, generally align with policies that safeguard European industries while pushing for constructive trade agreements[1][2].
In essence, the European Union's approach, backed by its members including Germany, is characterized by a prudent yet resilient stance against U.S. tariffs. The EU seeks to shield its economic interests while remaining open to negotiations. As the circumstances unfold, German parties are expected to continue championing EU-wide trade policies aimed at resolving trade disputes with the U.S. while upholding fair conditions for European businesses.
[1] Enrichment Data: https://www.dw.com/en/eu-commission-proposes-zero-tariffs-with-us-eyeing-us-aid-in-pandemic-response/a-57501815[2] Enrichment Data: https://www.politico.eu/article/eu-us-trade-war-extra-tariffs-airbus-boeing-brexit-us-china-trade-trump-diesel-cars/[3] Enrichment Data: https://www.politico.eu/newsletter/brussels-playbook/eu-us-trade-talks-resumed-as-tariffs-still- loom-444692[4] Enrichment Data: https://www.dw.com/en/eu-offers-united-states-carrot-or-stick-on-trade/a-57616815
- The Commission, in the context of the proposed directive on the protection of workers from risks related to exposure to ionizing radiation, has also been consulted on the draft directive, given the potential impact of ionizing radiation on European workers involved in the trade sector amidst the escalating trade tensions between the EU and the US.
- As Monday approached, Steffen Hebestreit, Chancellor spokesman, hinted at the possibility of the German government imposing tariffs on US-made yachts, in response to the ongoing tariff squabble, aligned with the EU's broader strategy of retaliatory measures.
- With the US yet to respond to the EU's offer for a zero-tariff scheme on industrial goods, CSU, one of the coalition parties in Germany, might encounter disputes with the Commission as the tariff negotiations progress, considering the party's inclination towards safeguarding German and EU industries.
