Preventing a Trade War: Germany’s Dilemma on U.S. Tariffs on Steel and Aluminium
Preventing a Trade War: Germany’s Dilemma on U.S. Tariffs on Steel and Aluminium

Author(s): Sebastian Płóciennik
Subject(s): Supranational / Global Economy, Governance, Economic policy, International relations/trade, Peace and Conflict Studies
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: Trade war; steel and aluminium; US tariffs; trade dispute with US; Germany; crisis in transatlantic relations;
Summary/Abstract: Germany is among the countries that have much to lose in case of an escalation of the current trade dispute with the U.S. Therefore, despite President Donald Trump’s administration imposing tariffs on steel and aluminium from the EU, Germany favours continuing talks and seeking compromise. From the Polish point of view, Germany’s caution is beneficial: it reduces the risk of a political crisis in transatlantic relations, protects economic interests, and creates an opportunity to block the construction of the Russia-backed Nord Stream 2 gas pipeline.

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