Stressing Urgency: Rich Reiche Pushes for Rapid Zollstreit Resolution Amidst Daily Million-Euro Losses for Germany's Economy
Daily Money Drain in German Economy Due to Customs Disputes
In her recent visit to the US, German Minister of Economics, Katherina Reiche, underlined the necessity of an immediate resolution for the ongoing Zollstreit. Speaking in Washington, DC, she stated, "The current Zollstreit is draining the German economy of millions of euros every day."
Her tour, due to end this Saturday, focuses on reinforcing the EU negotiations. Already, she has engaged in discussions with key American figures, such as Finance Minister Scott Bessent, Trade Minister Howard Lutnick, and US Trade Representative Jamieson Greer. Additionally, she plans to meet with American business leaders.
Reiche highlighted the extensive presence of German businesses in the US, with approximately 6,000 companies established across all 50 states. These enterprises provide employment for over 900,000 Americans. "This is all about fostering growth, investments, job creation, and efficient supply chains," she explained.
US President Donald Trump instigated a fresh trade conflict shortly after his inauguration by announcing new tariffs on EU imports. After a recent market turmoil, Trump decided to postpone the application of certain tariffs for 90 days—an extension set to expire on July 9. The suspension is meant for negotiations.
According to experts, the Zollstreit is part of a broader EU-US trade dispute, causing inflationary pressures in Europe. failure to resolve the issue may intensify economic tensions.
The escalating trade conflict has led to significant drops in major stock indices, with Germany’s DAX index plummeting by about 10%, losing a staggering 3,900 points since the US tariff announcement. US markets have also experienced a negative response, with both S&P 500 and Nasdaq futures falling, suggesting worries about slower economic growth due to erected trade barriers and outstanding trade deficits. Moreover, inflation risks have risen in Europe due to increased costs of imported goods, potentially exacerbating economic instability.
The on-going dispute also complicates various policy areas and international cooperation, as seen in conflicting energy and climate policies within Europe and between the US and EU.
Regardless of the complexities, Reiche stresses the urgency for an imminent resolution to prevent further damage to the German economy.
The German Minister of Economics, Katherina Reiche, emphasizes that the resolution of Zollstreit, a pressing issue causing daily million-euro losses for Germany's economy, is crucial for efficient policy-making, as it intertwines with community policy, employment policy, and even business and politics. Furthermore, the general-news of escalating trade conflicts has spurred concerns over finance and economics, threatening job security of over 900,000 Americans employed by German enterprises in the US.
