German finance minister calls for strong response to US tariffs

German Economy Minister Robert Habeck said that it was crucial for the European Union to have a unified response to US trade tariffs

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German Economy Minister Robert Habeck said on Thursday that it was crucial for the European Union to have a unified response to US trade tariffs.

"Europe's strength is our strength. We have the largest single market in the world. We must utilise this strength," Habeck said in a statement.

Meanwhile Germany's finance minister said on Thursday that the European Union needs to react strongly to US tariffs but the trade bloc remains open to seek an agreement.

"It would be naive to think that if we just sit there and let this happen, things will get better, so I'm expecting a strong response by the European Union," Joerg Kukies told the BBC World Service radio, adding that the door to negotiations remains open.

Far-reaching tariffs announced by the US administration will deal a major blow to the German industry, a major exporter to the world's top economy, leading sector representatives said.

"To be very honest with you: we will feel it," Dirk Jandura, president of Germany's BGA association representing importers and exporters. "We will have to translate the tariffs into price increases, and in many cases that means a drop in sales."

The comment came after US President Donald Trump announced sweeping duties on most global trading partners, including a 20 per cent tariff on products from the European Union, while there is a separate 25 per cent tariff for car imports.