Donald Trump duties. The Minister of Finance of Germany is already warning about the recession
“If the situation does not change, our export to the US will fall by about 15 percent.” – Kukies said on Monday in an interview with the German sender ZDF, referring to the data of the Munich Research Institute IFO. “Our growth prospects would deteriorate and the risk of recession would increase.”
Last week, Donald Trump threw the European Union into one of the worst categories of America's trading partners, hitting the 20 % alliance. tariff for all imports. If the duties remain in force, they will particularly hit the German economy – the United States is the largest export goal of Germany outside the European Union.
Kukies rejected the idea that Washington gained an advantage in commercial talks after the latest tariffs were announced. “Readiness to negotiate existed long before their announcement,” he said. “I don't see the United States gaining any advantage.”
“Risk of recession is growing”
The duties of the Minister of Finance Kukies also supported the strategy of the European Commission consisting in the preparation of hard remedies in the event of failure of conversations, while offering the abolition of duties for industrial goods, if the US reciprocates the same. “There is a wide consensus in German politics about this strategy,” said Kukies.
He also pointed to deteriorating moods in the American economy. “All the reactions that we observe from American companies and and polls indicate that the risk of recession is growing,” he said. “And in the period of economic slowdown, tax revenues usually decrease rather than grow.”
