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German finance minister says US also needs a swift tariff solution

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FRANKFURT (Reuters) -The United States has a shared interest in finding a rapid solution to the dispute over trade tariffs, German Finance Minister Lars Klingbeil said on Sunday. After a period of de-escalation, Trump on Friday reignited tensions, by pushing for a 50% tariff on goods from the 27-nation European Union, starting on June 1. Germany was the biggest EU exporter to the U.S. last year, sending goods there worth 161 billion euros ($183 billion), according to official figures.
German Finance Minister Christian Lindner expressed concerns about the U.S. Inflation Reduction Act, describing it as a "de facto protectionist measure" that could lead to a subsidy race among nations. Speaking at the World Economic Forum in Davos, Lindner highlighted the potential negative impacts on the global economy and emphasized the need for a level playing field. He suggested that the European Union should respond by improving its own competitiveness rather than engaging in retaliatory subsidies. Lindner's comments reflect broader European worries about the U.S. legislation, which offers significant incentives for electric vehicles and other green technologies, potentially disadvantaging European companies.

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