Germany should seek new trade agreements as part of EU strategy – Minister

Katherina Reiche says the US will remain a key partner, but the economy needs to diversify

The new German Minister of Economy, Katherina Reiche, has called for more active trade agreements as part of the European Union’s broader efforts to diversify markets. According to her, Germany cannot passively hope for better export and import conditions – concrete actions are needed. This was reported by Reuters.

After the handover ceremony, Reiche emphasized the importance of free trade agreements with countries such as Australia, Chile, India, Mexico, and the Mercosur bloc. At the same time, she emphasized that the United States will remain Germany’s main trading partner.

“Trade wars are disadvantageous for both sides, so it is extremely important to reach a free trade agreement with the United States,” Reiche said.

In 2024, bilateral trade in goods between Germany and the United States amounted to €253 billion.

New US customs initiatives, including a 25% tariff on steel, aluminum and cars and an additional 10% on almost all other goods, prompted the European Commission to coordinate a joint response from the 27 EU countries.

Industrialists note the deterioration of the investment climate. According to Volker Traer of the German Chamber of Industry and Commerce, the Trump administration’s tariff policy has caused a loss of investor confidence.

An AHK World Business Outlook survey of 4,600 German companies in more than 90 countries found that only 19% expect the German economy to improve in 2025, while 33% expect it to deteriorate.

As GMK Center reported earlier, the German government has lowered its economic growth forecast, expecting stagnation in 2025. Former Minister Robert Habeck called Donald Trump’s trade policy the main reason for the zero growth forecast.