"If the situation continues, our exports to the US will fall by about 15%," Kukies said in an interview with the German broadcaster ZDF on Monday, referring to the data of the Munich investigation institute Ifo. "Our growth prospects would deteriorate and the hazard of recession would increase".
Last week, Donald Trump threw the European Union into 1 of America's worst trading partners, hitting the alliance 20-per cent. tariff on all imports. If duties stay in force, they will peculiarly hit the German economy — the United States is Germany's biggest export mark outside the European Union.
Kukies rejected the thought that Washington gained an advantage in trade talks after announcing the latest fares. "The readiness to negociate existed long before they were announced," he said. "I do not see the United States gain any advantage."
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“The hazard of recession increases”
Mr Kukies, acting Minister of Finance, besides supported the European Commission's strategy to prepare tough measures in the event of a failure of talks, while offering the abolition of tariffs on industrial goods if the US so mutual. "There is broad consensus in German politics on this strategy," Kukies said.
He besides pointed to deteriorating moods in the American economy. "All the reactions we see from American companies and in the polls indicate that the hazard of recession is increasing," he said. "And in a period of economical downturn, taxation revenues tend to decrease alternatively than increase".
