German industry braces for impact as Trump's tariffs loom

"Will a great trade war break out now?" wonders "Der Spiegel" on Tuesday.

According to the weekly, the scale of concerns within the German economy regarding a trade war with Trump was evident on Monday at the German Ministry of Economy.

Robert Habeck, the head of the department, invited leading industrial and business associations to a crisis meeting, reports the weekly. According to the newspaper, at least 25 organizations representing various industries, from defense to automotive and even confectionery, participated.

"Donald Trump's announcements are particularly worrying for the German automotive industry," the weekly notes. Since the EU currently imposes a 10% tariff on vehicle imports, Trump's logic dictates that American tariffs on imports of cars from Europe should also be raised—from 2.5% to 10%.

This would have serious consequences for German manufacturers, emphasizes "Der Spiegel".

The EU has a chance to stand up to Trump "only if it is united," it adds.

The economic newspaper "Handelsblatt" recalls that Trump has repeatedly portrayed the EU, and especially Germany, as cheating the USA due to export surpluses. The newspaper believes Europe should learn from China.

"China reacted to the US's imposition of 10% tariffs on Chinese imports by calmly filing a complaint with the World Trade Organization and responding with retaliatory tariffs without risking escalation," it reads.

In the longer term, the newspaper highlights that Europe must show greater determination in seeking partners for free trade—in Latin America, Asia, and Africa. "Of course, countries in these regions cannot replace the largest economy—especially since after Trump, an era will come where the USA remains our most important partner. But as long as the American president is so unpredictable, arbitrary, and even blackmailing towards partners, diversifying trade structures is not a bad idea," comments "Handelsblatt".

Once again, Germany, the largest economy on the continent, finds itself in a particularly delicate situation: Germany is much more export-dependent than its European partner countries and is in the most difficult economic situation in decades, points out "Handelsblatt".

"For the entire EU, unity is a necessary condition to stand against the increasingly unpredictable US president," it summarizes.

The weekly "Die Zeit" sarcastically assessed that "tariff" has become the fourth, most beautiful word in Donald Trump's dictionary, after "God," "love," and "religion."

On Monday, the US announced tariffs on steel and aluminum imports will come into effect on March 12.

The impact will be felt most by Canada, but also by countries like Brazil and the EU. According to data from the American Iron and Steel Institute, the largest steel exporters in 2014 were Canada with 7 million tons, Brazil with 5 million tons, and the European Union with 5 million tons, with Germany, the Netherlands, and Romania accounting for half of this.

The new rates will also cover "finished metal products," and there will be no exceptions.

"It's a big deal—making America rich again," Trump said while signing the documents. He added, "This means many businesses will open in the United States."

The European Commission considers there is generally no justification for imposing tariffs on EU exports. "We will respond to protect the interests of European enterprises, workers, and consumers from unjustified measures," the Commission declared.