Kukies Advocates Measured Response to Trump's Tariff Decisions

During a recent visit to the Gulf region, Germany's Minister of Finance, Jörg Kukies, urged a calm and constructive approach to the newly imposed tariffs by the Trump administration. Speaking to German business representatives in Riyadh, Kukies emphasized that these initial decisions should be viewed as a starting point for negotiations rather than a definitive end, advising against any hasty reactions.

Kukies highlighted the importance of maintaining a constructive dialogue with Washington, asserting that the German government aims to send positive signals in response to Trump's recent actions. The U.S. President has announced that starting Tuesday, tariffs of 10% will be imposed on all imports from China, alongside a 25% tariff on goods from neighboring countries, Mexico and Canada. Additionally, a 10% tariff will be applied to energy imports from Canada, prompting immediate retaliatory measures from Canada and a planned complaint from China to the World Trade Organization (WTO).

As part of his delegation, which includes around two dozen representatives from various sectors of the German economy, Kukies is promoting Germany as a prime business destination in the Middle East. This tour, which will last until Tuesday, includes stops in Abu Dhabi and Doha after kicking off in Saudi Arabia. He noted that establishing more open trade partnerships is crucial, especially in light of increasing protectionism in other regions.

Kukies pointed out that the current climate between major trading partners, including Germany, China, and the United States, is fraught with challenges that need to be addressed. He expressed concern that China's economic strategy appears to be leaning towards self-sufficiency and independence, which could impact future trade dynamics.

In discussing the Gulf region's significance, Kukies remarked on the competitive landscape for trade partnerships, noting that depending on the criteria, different countries may emerge as leading partners. According to Germany's Federal Statistical Office, the trade volume with the United Arab Emirates ranks 34th, with Saudi Arabia following closely behind at 41st, and Qatar at 72nd. Germany sees substantial trade surpluses with these nations, particularly with Saudi Arabia, where the surplus stands at EUR5.6 billion, compared to EUR3 billion with the Emirates and EUR0.6 billion with Qatar.

This ongoing outreach to the Gulf states is part of a broader strategy to foster economic ties and explore potential investment opportunities, given the region's growing economic clout.