German Finance Minister: We are determined to engage in serious negotiations on customs duties

German Finance Minister: We are determined to engage in serious negotiations on customs duties

German Finance Minister Lars Klingbeil has indicated that the Group of Seven (G7) advanced economies are likely to produce a joint communique expressing support for Ukraine. Klingbeil made this announcement at a press conference in Banff, Alberta, on Thursday, May 25, 2025 [3].

The minister emphasized that if Russia is not prepared to engage in serious negotiations with Ukraine, the G7 will consider further sanctions. He stated that the conflict is a brutal war initiated by Russian President Vladimir Putin and that support for Ukraine will remain steadfast.

In a separate development, the European Commission has proposed new customs duties on Russian and Belarusian agricultural products and fertilizers. This move is part of the EU's strategy to reduce its economic dependencies on Russia [1]. The proposal introduces a 15% customs duty increase on previously unsanctioned Russian agricultural imports and a 50% tariff on approximately 100 products by removing Russia's "most favoured nation" status. Additionally, it establishes a gradual increase in duties on fertilizers over the next three years.

The European Commission's proposal aims to tackle Russia's flooding of the EU market with artificially cheap nitrogen-based fertilizers. These new customs duties will not only reduce Europe's dependency on Russian imports but will also provide crucial support to the struggling European fertilizer industry. The regulation includes an emergency mechanism allowing for the suspension of tariffs on fertilizers from countries other than Russia and Belarus if a significant price surge occurs.

Furthermore, the European Commission is preparing to introduce a 2-euro handling fee on online parcels entering the EU as part of a broader overhaul of its customs system. This fee aims to support customs authorities in addressing and verifying the compliance of goods with EU safety standards, especially on elements such as games and electronics [2]. The handling fee will be applied to parcels charged directly to customers outside the EU, with a reduced fee of 0.50 euros for shipments fulfilled from warehouses within the EU.

These developments reflect a broader trend of the EU seeking to address its dependencies and ensure the safety and fairness of its markets. The proposed reforms are part of the EU's ongoing efforts to create a more level playing field for retail traders and local logistics companies, many of whom argue that they are facing higher organizational and tax burdens.

References:
[1] https://www.reneweuropegroup.eu/news/2025-05-22/no-more-russian-fertilizers-eu-imposes-tough-new-customs-duties
[2] https://investorempires.com/eu-proposes-e2-handling-fee-on-online-parcels-in-customs-overhaul-targeting-global-e-commerce/
[3] https://www.usnews.com/news/world/articles/2025-05-22/g7-likely-to-have-joint-communique-on-ukraine-support-german-finance-minister-says