- The trust between Europe and the U.S. is not yet broken despite President Donald Trump’s tariff policies, Joerg Kukies, acting German finance minister, told CNBC Thursday.
- “For trust to be broken, a lot more would have to happen because the transatlantic partnership has been built over so many decades that we will not get carried away by the statement of tariffs,” he said.
- Kukies also stated that a zero-for-zero tariff agreement between the U.S. and EU would be his preferred outcome.
The trust between Europe and the U.S. is not yet broken despite President Donald Trump’s aggressive tariff policies, Joerg Kukies, acting German finance minister, told CNBC Thursday.
“For trust to be broken, a lot more would have to happen because the transatlantic partnership has been built over so many decades that we will not get carried away by the statement of tariffs,” he told CNBC’s Carolin Roth on the sidelines of the IMF World Bank Spring Meetings.
Kukies added that during a previous visit to Washington, soon after the 25% tariffs on all cars imported to the U.S. was announced, there did appear to be interest in coming to an agreement.
Europe and the U.S. have different interests and both parties need to understand one another’s viewpoints, he said. “But this is not the first time ever that the United States and Europe are negotiating over tariffs, so I don’t think we’re anywhere near a crisis moment.”
Kukies struck a positive tone when referring to talks, saying “everything is going in negotiation mode” with the bloc “optimistic” that it can resolve the differences.
A zero-for-zero tariff agreement would be his preferred outcome, Kukies stated. This aligns with what European Commission President Ursula von der Leyen has advocated for.
However, Trump has already rejected a proposal from the European Union for a deal which would see zero percent duties on industrial goods imported from the U.S. as well as on imports from the EU.
Germany is currently subject to 10% tariffs — the temporarily reduced rate announced by Trump after the initially imposed 20% duties.
The country’s struggling economy is heavily reliant on trade, as the U.S. serves as its most important trading partner. Tariff turmoil led by Trump is therefore expected to hit Germany especially hard.