German Vice Chancellor Alarmed By Trump’s Talk of Tariffs.

German Vice Chancellor Robert Habeck reacted with concern to plans for stiff new tariffs from US President-elect Donald Trump, warning on Tuesday that increased costs of imports in the United States would hurt everyone.

Habeck, speaking at a conference with German industrial leaders in Berlin, said he couldn’t speculate about what might happen but warned that Trump’s tariff plans discussed during the campaign could have serious consequences.

On Monday night, Trump announced that he intends to impose an additional 25% tariff on goods from Mexico and Canada, as well as additional tariffs on trade with China.

“Of course, last night’s decisions may indicate that this is all meant very seriously,” Habeck said on Tuesday.

He called for the European Union to craft a unified response to any new US trade barriers – “not to split into two or three country blocs, but to speak together as Europe.”

Trump has also threatened to impose higher tariffs on imports from the EU, which could hit the export-heavy German economy particularly hard.

“We are stronger when we cooperate, and we weaken ourselves when we compete, or compete in such a way that we weaken the economic substance of the other countries,” said Habeck.

The leader of the Federation of German Industries (BDI), an influential major business lobby group, warned that Trump’s tariff talk should be a clear call to action for European leaders.

“Trump’s plans for new tariffs have hit North America, Canada, Mexico and China tonight,” BDI President Siegfried Russwurm said at the event on Tuesday. “In principle, we could wait for the EU and Germany to appear on the list. That would do us massive damage.”

However, Russwurm said he is firmly convinced that Trump’s tariff plans would also do massive damage the US economy as well, in addition to increasing the competitive pressure on Germany and Europe.

“That’s why this wake-up call must also go to Brussels, including the EU,” said Russwurm.