Trump and Mnuchin's Pressure on the Fed, Causing Controversy: Klingbeil Slams Both - Trump and Klingbeil, German Finance Minister, criticize US tariffs and Trump's demands towards the Federal Reserve
The ongoing US-EU tariff dispute has taken a new turn, with a one-week delay in the implementation of a 15% tariff on most goods from the EU, set to begin this Thursday. This delay comes as German Finance Minister Lars Klingbeil prepares to meet with US Secretary of the Treasury Scott Bessent in Washington.
The meeting is in response to the agreed 15% tariffs on most goods from the EU, and Klingbeil aims to discuss quota regulations for steel, allowing specific amounts of steel to enter the US duty-free or at reduced rates. This move is aimed at mitigating the impact of the 50% tariffs on European steel and aluminum imports, which remain in place despite recent negotiations towards a quota system.
Under this proposed quota system, volumes of metal exports from the EU would enter the US at lower tariffs up to a specified limit, after which the 50% tariff would apply. The details of the quota system, including the quota size, in-quota tariff rates, and allocation mechanisms, are still under discussion.
Klingbeil has emphasized the importance of independent institutions remaining independent and free from political interference, and he does not expect discussions about the US Federal Reserve's interest rates or the dismissal of Erika McEntarfer to be a focus during the meeting.
Meanwhile, President Trump has been pressuring the US Federal Reserve to lower interest rates for months. Last week, Trump dismissed statistics chief Erika McEntarfer after the release of poor employment numbers, accusing her of "manipulation."
Trump and Bessent continue to push for 50% US tariffs on European steel and aluminum imports, a position that has been met with resistance from the German government. Klingbeil has been advocating for a tariff exemption or favorable quota system specifically for German steel, given the impact on Germany’s steel industry and jobs.
The US-EU tariff dispute has eased for many EU goods to a 15% tariff, but steel and aluminum remain at 50% tariffs. This reflects a complex ongoing negotiation with mixed European reactions—some see improvements, others find the deal unsatisfactory or asymmetric.
As the negotiations continue, it remains to be seen whether a compromise can be reached that benefits both parties and maintains the integrity of the global trading system.
[1] The New York Times [2] Deutsche Welle [3] Reuters [4] The Guardian [5] Bloomberg
- German Finance Minister Lars Klingbeil, in his upcoming meeting with US Secretary of the Treasury Scott Bessent in Washington, aims to discuss quota regulations for steel exports to the US, hoping to mitigate the impact of the 50% tariffs on European steel and aluminum imports. (politics, general-news)
- Despite President Trump's ongoing pressure on the US Federal Reserve to lower interest rates, Klingbeil has emphasized the importance of independent institutions remaining independent and free from political interference, alluding to the recent dismissal of Erika McEntarfer. (Donald Trump, Lars Klingbeil, SPD, politics, general-news, US President, US Federal Reserve)
