Germany, with its massive trade surplus with the United States, is likely to bear the brunt of U.S. President Donald Trump’s impending tariffs on Europe, German Economy Minister Robert Habeck has warned.
Speaking during a rally in Munich, Habeck, a Green Party leader vying for the chancellorship, emphasized that the economic fallout could hit Germany harder than other European Union states.
“It is a thorn in Donald Trump’s side,” he remarked, referencing Germany’s significant trade advantage. Although the tariffs would affect Europe as a whole, Habeck cautioned that Germany’s reliance on exports, especially to the U.S., places it in a particularly vulnerable position.
Habeck also noted Trump’s apparent fixation on German cars, which he described as an “obsession,” highlighting how prominently German vehicles feature on the streets of New York. To counter the looming economic threat, Habeck called for greater European unity, saying, “No matter what the next German government wants to do, it must do it in a European way.”
Trump’s tariff strategy, which has rattled global markets, has world leaders worried about a potential escalation into a full-blown trade war. Habeck has also proposed targeting American tech giants like Google, Amazon, and Meta with higher taxes, arguing that Europe is giving away too much valuable data without adequate compensation. “There is a saying that data is the new oil,” he explained. “If you follow that, we are currently handing over a lot of it to American and other large corporations without them paying for it.”
When asked about Europe’s readiness to respond to tariffs, Habeck reassured, “We have been in close contact with the EU for a long time and are preparing possible scenarios. We are prepared.”
At the heart of the issue lies a significant trade imbalance. In October 2024, European exports to the U.S. totaled €47.9 billion, while imports from the U.S. reached only €27.6 billion, leaving the EU with a surplus of €20.3 billion, according to Statista. Trump’s tariffs aim to address this disparity, though the move risks straining transatlantic relations further.
Friedrich Merz, Habeck’s main rival from the Christian Democratic Union (CDU), has taken a different stance. Describing Trump as “very predictable,” Merz suggested that the tariffs might be less about punishing Europe and more about exerting pressure for reform.
“Donald Trump is doing what he says he is doing. I think we can expect a lot more clarity on that in the coming weeks and months,” said Merz. He also framed the tariffs as an opportunity for Europe to strengthen its own defenses, both economically and militarily. “In this respect, it is also an opportunity for us to do the right thing,” he concluded.
With Trump’s tariffs looming large, Germany faces a critical moment. Habeck is pushing for European solidarity to weather the storm, while Merz believes the challenge could force necessary reforms. Either way, the stakes are high, and Germany’s response will have far-reaching consequences for its economy and its role in the European Union.
