German Finance Minister Lars Klingbeil urged fellow G7 leaders on Friday to find a fast resolution to the escalating trade tensions—tensions largely driven by President Donald Trump’s firm stance on protecting American industry through proposed tariffs on European imports.
Speaking at the G7 meeting alongside the G20 summit, Klingbeil acknowledged growing concern in Europe over Trump’s threatened 30% tariff on EU goods, a move aimed at leveling the playing field for American businesses that have long been disadvantaged by global trade imbalances. While calling for a deal, Klingbeil made clear that Germany won’t accept terms it sees as unfair, but the pressure is mounting.
Germany, with its export-driven economy, would be walloped by these tariffs. Bundesbank President Joachim Nagel acknowledged that the uncertainty surrounding Trump’s trade actions is unsettling the European economy. “The prosperity of us all is at stake,” he warned, highlighting just how dependent Europe has become on favorable trade terms with the U.S.
Trump’s America-first approach has reignited long-stalled conversations on fair trade, forcing European leaders to reconsider long-standing advantages. While U.S. Treasury Secretary Scott Bessent joined the G7 talks remotely, his absence from the broader G20 meeting underscored the administration’s focus on outcomes over optics.
Klingbeil insisted the EU wants a deal, but also warned that if no agreement is reached by August 1, Brussels is prepared to retaliate. Discussions include invoking the anti-coercion instrument—a clear sign that Europe is feeling the heat.
Ultimately, as Trump has long argued, trade deals must benefit American workers. The message from Washington is clear: the era of one-sided trade is over.
