The head of Germany’s engineering trade body on Monday called for a fresh attempt at a free trade agreement between the United States and the European Union in the face of steel and aluminum tariffs announced by U.S. President Donald Trump, Reuters reported.
“Nobody can have any interest in an escalation of trade disputes in which all sides - the United States, China and Europe - stand to lose at the end,” VDMA President Carl Martin Welcker said at the Hannover Messe trade fair, according to a prepared speech text.
Trump announced a 25 percent tariff on steel imports and 10 percent tariff on aluminum imports last month to counter what he has described as unfair international competition.
The EU is seeking compensation from the United States for the tariffs through the World Trade Organization (WTO).
“The U.S. President has made a lot of waves with his erratic trade policy and the announcement of a number of tariffs. We are very concerned about that,” VDMA’s Welcker said, adding that the United States appeared to be turning its back on the WTO.
The United States is the most important export market for German engineers, accounting for around 18 billion euros ($22 billion), or 11 percent of total exports.