Wadephul warns: Customs dispute with the USA could endanger Europe!

Wadephul warns: Customs dispute with the USA could endanger Europe!

In the midst of an impending customs dispute with the USA, Federal Foreign Minister Johann Wadephul (CDU) has urgently warned that such trade conflicts benefit no one. At a press conference with Indian Foreign Minister Subrahmanyam Jaishankar, Wadephul stressed that the imposition of tariffs would harm both the US and EU economic development. The reaction to the announced measures now lies with the European Commission, which has Germany's full support in order to secure access to the American market. The aim is to defend the European market and show persuasiveness in discussions with Washington. This clarification comes at a time when US President Donald Trump has announced punitive tariffs of up to 50 percent on certain goods from the EU.

Trump made the announcement via his online channel Truth Social, with the tariffs set to take effect on June 1, 2025. He also expressed concerns that ongoing negotiations with Europe would not produce results. The situation is tense because in the background is the 25 percent tariff regulation on steel and aluminum imports to the USA that was introduced in March 2025. This measure led to a rapid response from the EU, which announced countermeasures. These are set to come into force on April 1, 2025 and impose tariffs of up to 50 percent on American products such as bourbon whiskey and peanut butter.

Consequences for the European economy

The EU is ready to respond to the US tariffs and plans to impose counter tariffs on further imports, especially agricultural and industrial products, during April. EU Commission President Ursula von der Leyen warned that such measures could lead to rising prices, problems in supply chains and possible job losses. However, the Institute for the World Economy (IfW) estimates that the impact of tariffs on the European economy will be minimal, with a decline in GDP of just 0.02 percent. The true impact depends largely on demand and the availability of alternative products.

The current trade dynamics reflect a larger trend: the global decline in tariffs since the 1950s is increasingly being counteracted by protectionist measures from other countries. Jürgen Matthes from the German Economic Institute points out that an increase in protectionism has been observed since the financial crisis of 2008/2009. The US was previously seen as a pioneer of free trade, but under Trump this course was abruptly changed. Historically, tariffs have not only protected the domestic market but also generated revenue for states.

Global trade relations and possible impacts

In a global context, it should be noted that tariffs are a regular tool of trade policy. Although the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), have promoted the reduction of tariffs, tariffs are still used as a means of pressure in political negotiations. While Trump is using tariffs as a strategic tool to put pressure on other countries, there are concerns that this could lead to an all-out trade war.

An example of international tensions is Canada's announcement of tariffs on US products worth 29.8 billion Canadian dollars. China, on the other hand, responded by announcing that it would take “all necessary measures” to protect its own interests against US tariffs. The situation remains tense and it remains to be seen how trade relations between the affected actors will develop.

The tension between tariffs and free trade not only affects companies and consumers, but also has far-reaching economic consequences. Economists warn that rising tariffs could raise prices for consumers and disrupt the complexity of international supply chains. The hopefully upcoming negotiations between the European Commission and the USA could decide whether an escalation or an agreement is reached in the customs situation.