Klingbeil calls for agreement in the customs dispute: Danger for Europe is growing!

Klingbeil calls for agreement in the customs dispute: Danger for Europe is growing!

In view of the ongoing tensions in international trade, Federal Finance Minister Lars Klingbeil (SPD) has called for serious negotiations in the customs dispute with the USA and at the same time refrained from counterattacks. In a statement, Klingbeil emphasized that the current US tariffs endanger both the American and European economies. He sent a clear signal of European cohesion and emphasized the determination to protect national and European interests. Klingbeil's stance is supported by the German automotive industry. Hildegard Müller, President of the German Automobile Association, called for escalations to be avoided and advocated for an amicable political solution.

In this context, Klingbeil also mentioned the need for stable social security contributions and warned of rising costs, especially for health and nursing care insurance companies. In order to ensure long-term contribution stability, he calls for structural reforms and expects those responsible to adopt more creative approaches instead of cutting benefits. With regard to the budget preparation for 2025, he calls for savings of 0.5 percent in personnel and 2 percent in material costs in all ministries.

Economic challenges and risk management

Klingbeil's priority is to put Germany on a growth path and secure jobs. This is to be done, among other things, by reducing energy prices and stimulating investments. In times of uncertainty, particularly in international trade, it is crucial for companies to review their supply chains and contracts. The uncertainty about the future of tariffs is considerable, especially since US President Trump suspended 20 percent tariffs against the EU for 90 days on April 9, 2025, after which the EU also suspended counter tariffs on motorcycles, tobacco, beef and citrus fruits on April 10, 2025.

Companies face the challenge of managing increased costs due to tariffs. In many cases they have long-term supply contracts with fixed prices, which make it difficult to pass on additional costs to customers. It is necessary for companies to clarify how costs will be distributed between the contractual partners and whether any claims from suppliers can be rejected. The fundamentals of risk management in the supply chain must be examined in order to be better prepared for future customs developments.

Political strategies and need for reform

As a result, Klingbeil plans to reorganize the SPD after it only received 16.4 percent in the last election. He recognizes that the party needs to pay more attention to the concerns of working people. He excludes relief for top earners in the planned tax reform and focuses on supporting people with low and middle incomes. Klingbeil also received advice from former Chancellor Olaf Scholz to be better at saying no, which points to the challenging situation in which politics and the economy currently find themselves.

In conclusion, despite the pause in the international customs conflict, companies should take the opportunity to review their existing contracts and prepare for possible future challenges. The uncertainty surrounding the significant development of tariffs could become acute again at any time and requires proactive approaches to risk management.

For more information on the legal aspects of the US-EU trade war, please visit LTO.de and for the latest political developments click on Company Today.