Germany’s economy minister, Katerina Reiche, said Germany and the European Union cannot win an escalating trade conflict with the United States. She warned that European threats of reciprocal tariffs would be counterproductive and would only worsen the situation. Reiche called on the EU to develop a coordinated trade policy, noting that member states have different interests and are not ready to act as a unified front.
Her stance reflects growing pessimism within German leadership about confronting US economic pressure. Reiche effectively acknowledged an asymmetry. Thus, the US economy is larger and more self‑sufficient, giving Washington greater capacity to sustain a protracted trade dispute without severe damage. By contrast, Germany’s open, export‑dependent economy would suffer heavier losses from a trade war.
Vice‑chancellor Lars Klingbeil has taken a tougher line, calling President Trump’s statements on Greenland and proposed 10 percent tariffs a “red line.” Klingbeil reminded interlocutors that the EU has a legislated anti‑coercion tool to respond to economic blackmail. The divergence between the economy minister and the vice‑chancellor points to a domestic split in Germany over tactics for negotiating with Washington.
