BERLIN, March 2 (Xinhua) -- The announcement of punitive tariffs on steel and aluminum imports by U.S. President Donald Trump could inspire a wave of mutually-reinforcing protectionist measures, the Association of German Chambers of Industry and Commerce (DIHK) warned on Friday.
"Ultimately the dubious use of national security clauses in the World Trade Organization (WTO) could undermine the entire system of international trade," a statement by DIHK director Martin Wansleben read.
"There is a significant danger that others will follow suit and that the WTO-system could be hollowed out to the detriment of all," Wansleben added. The DIHK director emphasized that the German economy was particularly reliant on access to open markets and its business leaders were hence deeply concerned about the recent White House decision.
Trump has announced the imposition of a 25 percent tariff on all U.S. steel imports, prompting widespread criticism of this material manifestation of his "America First" rhetoric in Germany and beyond.
According to Alex Eggert, director of the European Steel Association (Eurofer), transatlantic steel exports from Europe could decline by between "20 and 25 million tons" as a consequence.
In 2017, the total annual export volume of European exports to the U.S. was to amount to 35 million tons worth around 30 billion U.S. dollars.
Reacting to the news on Friday, the German Engineering Federation (VDMA) expressed concerns about the possibility of a "global trade war" creating a "spiral of reciprocal tariffs." VDMA director Thilo Brodtmann further highlighted that the tariffs announced by Trump would harm the U.S. as well by leading to "higher prices on the American market and lowering the international competitiveness of domestic industry."
Joining the debate with a high-profile intervention, German Foreign Minister Sigmar Gabriel (SPD), also told the newspaper of the "Funke" media group that blanket tariffs by the U.S. would "hit German exports and jobs the hardest". Gabriel urged Trump to re-think his position on the issue in order to prevent an international trade conflict.
Meanwhile, the European Union (EU) has already announced that it would adopt retaliatory measures. Media reports have identified tariffs on bourbon whisky and Harley-Davidson motorcycles, as well as filing a legal case against Washington at the WTO as potential targets in this context.
"We will not sit back and watch idly while our industry is hit by unfair measures which endanger thousands of European jobs," Jean-Claude Juncker, president of the EU Commission said. Instead, Washington should have to expect the EU to act "decisively and appropriately" to defend its interests.
