EU-US trade deal will come with consequences, German industries warn
Von der Leyen and US President Donald Trump struck a tentative trade deal to avert a potentially devastating tariff war between two of the world's largest economies on Sunday. The majority of EU exports bound for the US will be subject to a 15% tariff.
According to a statement made by von der Leyen, this also includes billions of euros in EU investments in the US, as well as the purchase of defence equipment.
Tariffs of 15% will now apply to car exports to the US, compared to the previously announced 25%. Import duties on steel are to remain unchanged at 50%.
The German economy can breathe a sigh of relief for the time being, according to Managing Director of the German Chamber of Industry and Commerce Helena Melnikov.
Melnikov said that worse has been prevented, however, "the deal has its price, and this price is also at the expense of the German and European economies."
Wolfgang Niedermark from the Federation of German Industries was more critical. He stated that even a tariff rate of 15% would have an "immense negative impact" on Germany's export-oriented industry.
The Federal Association of Wholesale, Foreign Trade and Service also spoke of a "painful compromise" and warned that supply chains would change and prices would rise, saying the deal will cost Germany growth, prosperity and jobs.
Federal Chancellor Friedrich Merz, who was satisfied with Sunday's agreement, wrote on X that the deal showed it was possible to "avert a trade conflict".
However, a review of Trump's actions to date raises doubts about the reliability of the agreement and the US president's words.
In an interview with the Funke media group, Michael Hüther, director of the Institute for the German Economy, said that concerns remained as Trump had never completely taken tariff threats off the table.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
an hour ago
- Fashion Network
Texworld Apparel Sourcing Paris announces 1,300 exhibitors for September
Messe Frankfurt's Paris event takes place from September 15 to 17 at Le Bourget, with Texworld featuring over 600 materials manufacturers, and Apparel Sourcing just as many clothing and accessories suppliers. This edition, which will be held in halls 2, 3, and 4, will be largely made up of companies from China, Turkey, India, South Korea, and Taiwan. Introduced in February, the "Initiatives by Texworld" area, dedicated to innovative and inspiring approaches, will be back. The apparel offering has gained strength once again compared to the 465 companies gathered at the beginning of the year. This is occurring against the backdrop of Asian production previously destined for the United States being redirected towards Europe, provoking a desire for local sourcing on the Old Continent. 'In the context of the economic tensions we've been experiencing for several months, this year's edition reflects the recomposition of supply chains,' explained Julien Schmoll, marketing and communications director at organizer Messe Frankfurt France. 'Overall, we're witnessing an increase in the supply of finished garments, a resurgence of countries such as China and India in search of secure commercial outlets, and the emergence of new horizons for near sourcing, product innovation, and diversification. Our role is to provide buyers with the best solutions to address these movements.' The show will once again feature its Leatherworld area dedicated to leather and leather products, as well as Avantex, an international zone dedicated to innovative and sustainable solutions for the fashion industry. This area has now been expanded to include some thirty companies, which will be exhibiting in close proximity to the trend areas and the conference agora. Presentations and round tables will follow one another over the three days of the show. Discussions will focus on the transformation of the industry, circularity, and natural materials, as well as the impact of artificial intelligence on the sector, consumer trends, and new European regulations. The previous editions of Texworld Paris and Apparel Sourcing Paris, held from February 10 to 12 at Le Bourget, attracted 8,500 visitors. This represents a 10% increase over the February 2024 session.
France 24
an hour ago
- France 24
Life after cod: Latvia reinvents its coastal communities
Decreasing salinity in the Baltic Sea is robbing the saltwater fish of the conditions it needs to thrive. And as its population shrinks, so do the fishing traditions that have long characterised villages along Latvia's 494-kilometre (307-mile) coastline. The result for the communities in this small EU nation is a drive to reinvent themselves, to survive. With the European Union steadily cutting allowable catches of Baltic cod, and moving towards a total ban to replenish stocks, towns and villages are diversifying into tourism and seafood processing. "We launched a new marina for yachting, offered services for sea travellers, and a French investor opened a brand new shipyard for yacht building," Agris Stulbergs, harbourmaster for the port in the village of Engure, explained to AFP. Leisure boating has become a favoured activity in this village, located just 50 kilometres from the capital Riga, and others. Farther west, in the port city of Ventspils, Juris Petersons, a lifelong seaman, reminisced how Latvian fishers used to bring in lavish hauls of fish highly valued in kitchens from Russia to Britain. "Back in the mid-80s the Latvian fishing fleet brought in 55,000 tons of Baltic cod, in addition to salmon, herring and many other saltwater fish," he said. Now "the environmental conditions have become so unfavourable to cod growth that Latvian fishermen are allowed to catch just 16 tonnes of cod a year," he said. "And even that amounts only to the accidental by-catch when we fish for herring," said Petersons, an industrial fishing boat skipper until he sold off his trawlers last year. The Baltic Sea is fed by a number of large freshwater rivers. It is connected with the North Sea only through the shallow Danish straits, preventing Atlantic saltwater from entering the Baltic basin. Rare storm needed In order to recover, the cod population would need a rare seastorm, with just the right windspeed at the correct angle to push masses of saltwater into the Baltic Sea. That "happened at least twice during the previous century, but currently we're waiting for that perfect storm for the third decade", Petersons said. Given the smaller yield, many in the industry have focused on quality over quantity. "All the fish canning companies... have either gone out of business or turned their production lines into making more valuable export-grade products," said Janis Megnis, chief of the Roja port administration. Their high quality herring and anchovy products "can be found today from Walmart in the United States to stores in Australia and Japan", he said. Political changes have also affected the industry. Historically Latvia's fish processing industry mainly served markets in Russia and Belarus. But with the Russian annexation of Crimea in 2014, followed by Moscow's invasion of Ukraine in 2022, and the resulting Western sanctions, Latvian fishing companies have been forced to seek other markets. The biggest importers today are Canada, Ukraine, Poland, Romania, Denmark and the UK, according to the agriculture ministry. New markets include Arab countries and South Africa. Tourists courted Many families in Latvia's coastal towns have also turned their former fisheries into guesthouses and vacation destinations or switched from selling raw fish to the more lucrative smoked, prepared and spiced varieties. "My husband is a fifth-generation fisherman: he goes out to sea for fish, which we then smoke and turn into high-end products," said Iveta Celkarte, who runs a fishing estate in Berzciems village. "We also have a family cafe... serving our own seafood," said Celkarte, who has also become a television and social media personality. Celkarte offers three-hour tours about the history of traditional fishing, taking visitors on a stroll through dunes to the shore and finishing with a special meal. "For me it is important to tell people about the traditions of our coast, the history of fishing and the life of previous generations working on the sea" she said. Aivars Lembergs, a former mayor of Ventspils, said he began turning his city into a manufacturing hub and developing tourism has been key, and is paying off. The city is seeing many tourists coming in from neighbouring Lithuania. "During summers you'll sometimes see more Lithuanians on the streets of Ventspils than Latvians, as Lithuania has a very short Baltic coastline, and their tourists come here to enjoy the short Baltic summer," said Lembergs, who was mayor between 1988 and 2021.
Fashion Network
2 hours ago
- Fashion Network
Texworld Apparel Sourcing Paris announces 1,300 exhibitors for September
Messe Frankfurt's Paris event takes place from September 15 to 17 at Le Bourget, with Texworld featuring over 600 materials manufacturers, and Apparel Sourcing just as many clothing and accessories suppliers. This edition, which will be held in halls 2, 3, and 4, will be largely made up of companies from China, Turkey, India, South Korea, and Taiwan. Introduced in February, the "Initiatives by Texworld" area, dedicated to innovative and inspiring approaches, will be back. The apparel offering has gained strength once again compared to the 465 companies gathered at the beginning of the year. This is occurring against the backdrop of Asian production previously destined for the United States being redirected towards Europe, provoking a desire for local sourcing on the Old Continent. 'In the context of the economic tensions we've been experiencing for several months, this year's edition reflects the recomposition of supply chains,' explained Julien Schmoll, marketing and communications director at organizer Messe Frankfurt France. 'Overall, we're witnessing an increase in the supply of finished garments, a resurgence of countries such as China and India in search of secure commercial outlets, and the emergence of new horizons for near sourcing, product innovation, and diversification. Our role is to provide buyers with the best solutions to address these movements.' The show will once again feature its Leatherworld area dedicated to leather and leather products, as well as Avantex, an international zone dedicated to innovative and sustainable solutions for the fashion industry. This area has now been expanded to include some thirty companies, which will be exhibiting in close proximity to the trend areas and the conference agora. Presentations and round tables will follow one another over the three days of the show. Discussions will focus on the transformation of the industry, circularity, and natural materials, as well as the impact of artificial intelligence on the sector, consumer trends, and new European regulations. The previous editions of Texworld Paris and Apparel Sourcing Paris, held from February 10 to 12 at Le Bourget, attracted 8,500 visitors. This represents a 10% increase over the February 2024 session.
