"A painful compromise". German business criticizes the EU-US trade deal
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German industry has reacted negatively to the new EU-US trade agreement, calling it a painful compromise that will harm the European economy. About writes german weekly magazine Spiegel.

The European Union and the United States agreed to reduce duties on imported goods, including cars, semiconductors, and pharmaceuticals, to 15%.

In exchange, the EU promised to buy $750 billion worth of American electricity and invest $600 billion in the United States.

The Federal Association of German Industry (BDI) criticized the deal.

"The agreement is not enough of a compromise and sends a damaging signal to closely linked economies on both sides of the Atlantic. The EU is agreeing to painful duties, because even a 15% rate will have huge negative consequences."wolfgang Niedermark from BDI said.

According to him, "The only positive aspect of this agreement is that further escalation of the conflict has been avoided for the time being.". The BDI also emphasized that the agreement does not address the issue of duties on steel and aluminum, which only deepens uncertainty.

The Federal Association of Wholesale Trade, Foreign Trade and Services (BGA) called the agreement a "painful compromise" and added: "For many of our traders, the customs duty means a threat to their livelihood."

According to the BGA, the deal with the US "will cost Germany in terms of lost growth, welfare and jobs"

Despite this, German Chancellor Friedrich Merz welcomed the agreement as a way to avoid a full-blown trade conflict, especially for the automotive industry, where tariffs will be reduced from 27.5% to 15%.

Finance Minister Lars Klingbeil praised the agreement as a step in the right direction, but called for an analysis of its impact on the economy and employment. He also emphasized the need to reduce Europe's external dependence on trade.