Bloomberg Talks German Finance Minister Joerg Kukies Talks US/EU Trade
Apr 24, 2025
Joerg Kukies, the German Finance Minister, discusses the pressing trade dynamics between the US and EU. He advocates for a trade deal that would eliminate tariffs on industrial products, emphasizing its potential to ease tensions. The conversation touches on the intricacies of negotiations, including key sectors like automotive, and highlights the need for regulatory alignment. Kukies also points out the importance of forming new trade agreements to strengthen the EU's competitiveness against global rivals while boosting Germany's economic outlook.
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Zero-Tariff Deal Ideal Outcome
- The EU aims for a zero-tariff deal on industrial goods with the US, which would be economically efficient for both sides.
- Key challenges include agriculture, services, non-tariff barriers, and sector-specific issues like automotive tariffs that still need negotiation.
Auto Standards Boost Competitiveness
- Resolving technical regulatory differences in the auto sector could boost competitiveness of US and European manufacturers against China.
- Harmonizing safety standards would create economies of scale and be mutually beneficial.
Avoiding Tariff Escalation
- Both the US and EU want to avoid tariff escalation and prefer negotiation to conflict.
- The EU is prepared to respond with countermeasures if no agreement is reached.