German Finance Minister: Plan A is still agreement with US and reduction in tariffs, plan B is counter-tariffs and other measures.

German Finance Minister: Plan A is still agreement with US and reduction in tariffs, plan B is counter-tariffs and other measures.

German Finance Minister Joerg Kukies emphasized the urgency of reducing uncertainty in economies and businesses during his remarks at the Semafor World Economy Summit in Washington on Wednesday. Kukies stressed the need for an agreement on trade tariffs with the United States, stating that prolonged uncertainty is detrimental to both economies [1].

Germany, a member of the Group of Seven advanced economies, has experienced economic stagnation for the past two years, making it the only member of the group without growth during this period [2]. The situation could potentially worsen due to the tariffs announced by U.S. President Donald Trump, which may lead to a third consecutive year of recession for Germany, a first in its post-war history [1, 2].

Kukies' comments underscore the need for an immediate agreement on trade tariffs. If the situation remains unresolved, Germany may face significant economic challenges, including potential job losses and a deeper recession. The finance minister's remarks highlight the importance of reducing uncertainty and the potential risks for the German economy if the tariff situation persists [2].

Germany's economic recovery from the 2008 financial crisis has been fragile, and the tariffs announced by the U.S. could exacerbate the situation. The German economy relies heavily on exports, and any disruptions in trade could have severe consequences [3]. The German Industry and Trade Association has warned that trade policy measures could lead to countermeasures, potentially causing further harm to the German economy [3].

The German Finance Minister's plan B, which includes the possibility of counter-tariffs and other measures, underscores the seriousness of the situation. While Germany is committed to finding a solution through negotiations, the potential for countermeasures indicates the country's resolve to protect its economic interests [2].

In conclusion, the German Finance Minister's remarks highlight the urgent need for an agreement on trade tariffs with the United States. The potential economic risks for Germany underscore the importance of reducing uncertainty and finding a solution that benefits both economies. The situation requires immediate attention and cooperation between Germany and the United States.

References:
[1] https://finance.yahoo.com/news/german-finance-minister-says-urgent-184326678.html
[2] https://www.investing.com/news/stock-market-news/german-finance-minister-urges-trade-tariff-agreement-with-us-93CH-3999607
[3] https://www.theatlantic.com/ideas/archive/2025/04/nazi-germany-tariffs-trade/682521/