Juncker told to be TOUGH on Trump: German industry chief tells EU not to be ‘blackmailed’

Dieter Kempf, president of the Federation of German industry, has told the two leaders to “apply the emergency brake” in their row over trade tariffs in order to find a common position that will benefit transatlantic business.

European Commission President Mr Juncker travels to Washington in the hope he can put an end to a feud with the US President, a meeting that has been in the making since the pair exchanged views at the G7 summit in Quebec, Canada.

During their last encounter, Mr Trump branded the EU’s most senior official a “brutal killer” and has since branded the EU a “foe”, citing their trading strategy as the reason for his wariness of the Brussels bloc.

Despite hoping for Mr Juncker to end the US-EU trade dispute, Mr Kempf believes Brussels should use its position in the world and “not allow itself to be blackmailed”.

The German business chief is keen to stress the importance of his country’s automotive industry for US jobs, something Mr Trump has vowed to protect through his protectionist “America first” campaign pledge.

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Mr Kempf said: “Commission President Juncker and US President Trump must apply the emergency brake in the trade dispute. For this, Washington needs to de-escalate the rhetoric.

“The tariffs imposed under the guise of national security should be removed.”

“It is now important to establish a common understanding of the facts and regain trust,” he added while encouraging Mr Juncker to point out the importance of German industry in the American job market.

Berlin’s automotive industry employs more than 118,000 people in the US with 60 percent of its production in the States being exported to other countries.

Mr Trump sent shockwaves through Angela Merkel’s prized industry after threatening to slap 20 percent tariffs on European car imports.

The billionaire tweeted that America should “build them here”, suggesting more US-made cars should available on his country’s market.

These threats follow on from Mr Trump’s decision to refuse Brussels an exemption of his imposed tariffs on steel and aluminium imports, which provoked EU trade bosses to launch retaliatory measures.

Mr Trump insists the tariffs are in place to protect US steel and aluminium industries, which he claims are key to national security.

The EU singled out a number of culturally significant US manufacturers to impose tariffs on as a response to the President’s own trade taxes.

Motorcycle maker Harley-Davidson has warned Washington that its profit margins are likely to be halved this year as trade tariffs bite.

The firm said profits margins will be 9-10 percent, compared to 20 percent a year ago.

Harley-Davison expected additional costs of between $45m-$50m this year, owing to the EU tariffs and the higher prices of steel and aluminium.

Mr Trump is little bothered by the complaints, instead opting to return fire at Brussels ahead of the meeting.

He tweeted: “Tariffs are the greatest!

“Either a country which has treated the United States unfairly on trade negotiates a fair deal or gets hit with tariffs.”

Mr Kempf added that Mr Juncker and his Brussels delegation, which includes trade commission Cecilia Malmstrom, should not be bullied on their White House visit.

As one of the world’s largest trading powers, Europe must insist on dealing with trade disputes through the framework of the World Trade Organisation, according to the German business chief.

Unilateral trade policies outside of WTO rules are dangerous for economic development around the world, including the US, he said.

“Europe should not allow itself to be blackmailed and should behave confident in the US,” concluded the German.


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