Germany resists EU members' efforts to take a tougher stance against China’

German Trade Minister Katherina Reiche travels from ’ to China’e Monday to Friday as the trade deficit with Berlin’in Beijing’le continues to deepen.

The trip comes two days after several of AB’'s largest economies (France, Spain, Italy, the Netherlands and Lithuania) issued a statement calling for AB’ to take action against overcapacity and unfair trade practices.

However, Berlin did not approve the call.

Germany remains the main narrow spot in AB’'s strategy for China’e. Previously on Euronews has been reportedGermany, which said the publication of ’'s trade deficit with Beijing’ late last year was a turning point for the EU administration, which sought to sharpen its means of commercial defense, continues to support cooperation with China.

In March, German Chancellor Friedrich Merz called for a trade deal with Beijing. City of Brussels was pushed backagainst the idea.

Olof Gill, vice-president of the Commission ’, said at the time: There are a number of concerns and real challenges that “ constantly expresses, and we need to see them address it in a meaningful way before we talk about any future deal or anything like that.’

Berlin hopes Beijing will keep the ’ market open to German industry, despite a record trade deficit of €87 billion with China, obstacles faced by EU companies in China’, and a strategy to reduce the Asian giant's dependence on foreign products.

Access to the Chinese market

The main purpose of Reiche’'s visit this week is to discuss potential economic cooperation. According to the German government, the strategy is to explore opportunities for future cooperation while maintaining dialogue with the Chinese leadership.

Despite the ever-increasing trade deficit, China continued to be ’'s most important trading partner in 2025. According to the Federal Statistical Office, the volume of bilateral trade reached 250 billion Euro’. About 5,200 German companies operate in ’, making the country one of ’'s most important foreign markets for the automotive, mechanical engineering and electrical industries.

During the trip, Reiche’ is expected to hold political talks, attend a business forum and visit local companies. He will be accompanied by a business delegation representing about 40 companies. The focus will also be on the development of energy technologies.

Oliver Oehms, Executive Director of the German Chamber of Commerce in ’, China, said: "We hope that our visit to “ will help transfer the insights gained on the ground to the political debates in Berlin’ and further develop bilateral exchange.

In a survey published by the Chamber in May, 51 percent of German companies operating in China’ supported policies that support partnerships with Chinese companies, while 42 percent supported the use of ’strategic’ with information obtained through such partnerships.

But these sectors are also increasingly under pressure as Chinese competitors benefit from extensive state subsidies.

According to a report published in May by the European Reform Centre, an EU think tank, the concentration of global automobile, machinery and chemical production in China’ could undermine innovation in traditional manufacturing centers and increase Beijing’'s influence over Berlin through the threat of supply disruption, similar to the blockade imposed on rare-earth exports in 2025’te.

The report also noted that the demand generated by Germany's fiscal stimulus after ’ eased the debt brake could increase Chinese imports instead of supporting Berlin’'s domestic industry.

Germany’'s China’e exports on an annual basis %9.7 imports of Chinese goods such as electronics, electric vehicles and components while falling %Significantly increased by 8.8 percent.

According to the report, “China has already eaten most of the German industry's lunch and is preparing to start dinner, ” said.

German lawmaker, Donald Trump’ says EU car tariffs target ‘Germany’

German lawmaker Bernd Lange (S&D), head of the European Parliament's trade committee, told Europe Today’e on Monday that Trump’ is not interested in EU vehicles. %He said the decision to impose 25 tariffs was politically motivated and targeted directly at German automakers.

Lange, “These tariffs have no legal or economic reason. This is really politically contrary to Germany's ’, he said. “ is specifically targeted at German automakers.”

Lange’nin's remarks came a few days after German Chancellor Friedrich Merz’in US Trump’ announced the tariffs after ’'s criticism of his war in Iran’.

The US president has accused many European countries of refusing to contribute to Washington ’'s military operations against Iran ’. On Friday, Germany announced it would withdraw 5,000 U.S. troops from ’.

Measures if enacted this week, July 2025, between ’te Trump and European Commission President Ursula von der Leyen Turnberry, Scotland, agreed under the trade agreement reached in ’ %He's going to violate his 15th ceiling.

Lange expressed doubts about the Turnberry deal, which was reached after weeks of trade tensions between Europe and the United States following Trump’'s rise to power and the launch of a nationalist trade agenda.

Lange said “ about the deal, which I'm not sure we can really continue.

Divisions over the guarantees of Parliament

The Turnberry agreement was subsequently suspended several times by members of the European Parliament; Especially after Trump’ threatened tariffs on EU countries that didn't allow him to buy Greenland’.

The mood in “ changed especially after Greenland’, Lange said, adding that all retaliatory options are now on the table after Trump’'s recent threats.

Referring to AB’'s anti-pressure tools designed to respond to economic pressures from third countries, we have the “Toolbox, and of course all the tools are also available, ” said. “We will also look at other elements, such as countermeasures, such as counter tariffs or export restrictions.”

The agreement is currently being discussed between EU governments and lawmakers with the aim of reducing EU tariffs on U.S. industrial goods to zero, as outlined in the agreement.

Members of the European Parliament nevertheless added security measures to the joint statement, including a ’ sunrise “ clause, which stipulates that the new EU tariff cuts must meet US”'s obligations, and a ’ sunset “ clause, which will terminate the agreement in March 2028”.

However, EU member states are divided on these provisions; France's European Parliament supports ’'s tougher stance, while Germany resists.

Lange said “, Germany was unfortunately more in the second camp. “Now I think there's a change here too.”

Audi achieves strong performance backed by electric vehicle sales

German car giant Audi announced the results of the first quarter of 2025’ on Monday, and compared to the same period of 2024’ %It reported revenue of €15.4 billion, up 12.4 percent. The main reason for this was a better mix and higher battery electric vehicle (BEV) sales.

This happened despite obstacles such as increased competition, a weak global economic outlook, and geopolitical instability.

Operating profit in the first quarter of the year reached 537 million Euro’. Return on sales %It was 3.5; This was mainly due to the high costs of goods sold, the provisions of the CO2 regulation and the high BEV share. Net cash flow was -61 million euros.

Audi, worldwide in the first quarter of the year %It delivered 46,371 electric cars, up 30.1 percent. France’ in demand for these electric vehicles %While there was an increase of 169’, demand also increased in Switzerland’ %It's up 120.

EV sales in Netherlands’ %While increasing by 87 percent, Norway’te %An increase of 64’ was recorded. Similarly, Audi’nin in electric cars in the German domestic market %There was an increase of 59’.

Total Audi deliveries reached 383,401 vehicles in the first quarter; This is compared to the same quarter of 2024. %That's 3.4 down.

Gernot Döllner, CEO of Audi’, said in a earnings press release on the Volkswagen Group’'s website: The first few months of “2025’ saw us take decisive steps towards repositioning our company. This includes the future-oriented agreement signed in March between the company management and the business council, which aims to increase productivity, speed and flexibility at our German facilities.”

“ will continue to be quite challenging this year due to global economic conditions. However, Audi has started to implement its strategy and continues to do so. Our model initiative is now step-by-step into global markets. We are especially encouraged by the sales and order purchases of our new electric models.”

Audi’'s CFO ’ (CFO) Jürgen Rittersberger also said: “Our key figures for the first quarter clearly show that we need to continue to improve our efficiency and competitiveness, and therefore continue the transformation of Audi’ with all our strength.”

He added: “The agreement for the future has set the right course. Together, we will overcome challenges and necessary changes and bring Audi’ back to the forefront.”

As for the full year's outlook, the Audi Group expects revenue to be between €67.5 billion and €72.5 billion, while operating margin is likely to be between €67.5 billion and €72.5 billion. %With the 7 %He expects it to be between 9. Net cash flow is expected to be between €3 billion and €4 billion this year.

In its earnings press release for the first quarter of 2025, the company said: In the current high volatility environment, especially in the USA, the financial effects of import tariffs cannot be assessed with certainty.

“As certain parts of the agreement are being worked on, the future financial implications of the agreement are currently being assessed. As a result, the estimate does not yet include these two factors.”

Audi Sees Increased Demand for All-Electric Vehicles

Audi’'s all-electric model deliveries in the first quarter of 2025 compared to the same quarter last year %It increased by 50.4 to 25,129 units. Germany’da Audi, %An increase of 59’ delivered 8,640 fully electric vehicles.

Europe excluding GermanyGeneral Audi brand deliveries in ’ in the first quarter of the year %3 declined to 112,707 units. Germany’da Audi deliveries in the first three months of the year %It increased by 4.8 to 48,447 units.

The company also experienced its best first quarter to date in terms of deliveries across all drive types in Poland, Croatia and Austria’.

North American deliveries (except Mexico), mainly due to the fact that some models are currently undergoing generation change %It declined by 2.1 to 48,599 units.

Deliveries in China’ in the first quarter of the year compared to the same quarter last year %7 declined to 144,471 units. The main reason for this was the increased competition in the Chinese domestic market.

That's why Audi is working to rapidly grow its electric vehicle portfolio and strengthen its Chinese operations with local consumer-specific models, as well as partnerships with local partners.

How is Germany’'s auto industry preparing for Donald Trump’'s tariffs?

U.S. President Donald Trump on Tuesday launched a tariff war with U.S. ’'s three largest trading partners; Canada and Mexico’ya ’ imposed customs duties, and China’e doubled the import tax already imposed %He went up to 20’.

On Thursday, Mexico withdrew and postponed tariffs on some imports from ’ and Canada, but stressed that it would impose additional tariffs in early April.

The prospect of an international trade war triggered by Trump’'s tariffs comes at a bad time for the German economy, which is shrinking for the second time in a row in 2024’.

Once an economic powerhouse, ’ is projected to be the bloc's weakest performing country by 2025.

But experts suggest that the impact of the tariff war between China, Mexico and Canada will have a limited impact on Germany, at least for now, as well as affecting German manufacturers and suppliers in these three countries.

Julian Hinz, Professor of International Economics at the University of Bielefeld and Chair of the Trade Policy Research Group at the Kiel Institute for World Economics, euronews’e said: “In the medium term at least, some trade divergence can be expected in the sense that products designed to go to ABD’ye, for example China’e, now reach European markets.”

But instead of the US, China, Mexico and Canada, Europe can also import a little more than ’. Hinz says “Effects blur the overall picture a bit.

German car companies, including Audi, produce cars in ’, Mexico. According to the German Automobile Association (VDA), German automakers produced 716,000 cars in the country, mainly in the US market.

If Trump’'s tariffs mean German cars made in the Mexican ’ can't be sold as easily, or are now much more expensive in the US ’, this could have a bigger impact on “, Hinz says.

On Thursday, Trump granted a one-month tax exemption to automakers in Mexico and Canada, following talks with industry leaders.

But by the end of the month, German economist Thomas Hutzschenreuter says tariffs, followed by reduced demand for German cars from the Mexican ’, will affect the German, European ​​ and Mexican workforce.

Hutzschenreuter Euronews’e “Unemployment rates will be affected” said.

Tariffs of the European Union

Experts warn that the picture will change dramatically if Trump’ decides to impose tariffs on the European Union ’; He threatened to do so in late February.

Hutzschenreuter, “This means that individual companies will have to diversify their sales around the world. In other words, they will have to prioritize the U.S. market and give more priority to other markets. This is currently being discussed at most German companies, ” said.

“The problem, however, is that you can't react quickly when applying tariffs. The reaction takes more time. So you'll be impressed in the short term.”

According to figures from the German Trade and Investment (GTAI) office, one of the sectors particularly exposed is the fact that in 2023, Germany exceeded ’'s total exports. %It is the automotive industry of the country that makes up the 17’sini.

Germany’'s automotive industry entered crisis mode last year when once-strong automakers like Volkswagen closed their factories and laid off thousands of people.

VDA president Hildegard Müller said in February that Trump's European Union %He commented that the threat of 25 customs duties was a “provocation”.

Müller, “Tariffs are the wrong negotiation tool, ” said. “The risk of a global trade conflict that will negatively affect the world economy is high.”

According to simulations by the Kiel Institute for World Economics’, increased tariffs will lead to economic losses and inflation in both AB’ and ABD’.

In ’, Germany, this will affect the automotive and mechanical engineering industries; Kiel Institute of Total Production for Automobiles %It shows that it will decrease to 4’e.

Hinz, “This is a huge figure for an industry that is already in a difficult situation, ” says.

One thing that should be emphasized for Hinz, Germany and the EU as a whole is that although the U.S. is an important trading partner, exports He said that ’ had to go there.

Even in the worst-case scenario of dramatic tariffs imposed by “, most of the imports from AB’ remain in AB’, and many other trading partners will continue to operate as before, with trade operating perfectly under WTO rules and free trade agreements.

Hinz, “, this is where the U.S. hurts itself the most, ending up as ”.

Large acquisition in the logistics sector in Europe

In a statement made by German Railways, it was stated that DSV ⁇ 's 14.3 billion euro offer for Schenker was accepted.

The acquisition is expected to be completed in the second quarter of next year, after obtaining the necessary permits.

German Railways also announced that the deal is worth 14.8 billion euros, including the expected interest income until the sale is completed.

German Railways, which has a debt of 33 billion euros, put Schenker ⁇ i on sale last year to focus on the main railway business and reduce its debt, after criticism with the increase in delays in trains in Germany.

The acquisition was the largest ever made by a Danish company.

DSV employs approximately 75,000 people worldwide. The Danish company wants to further strengthen its operations in Europe with the acquisition of the German company.

Headquartered in Essen, Schenker ⁇ in has 72,700 employees in more than 130 countries.

DSV announced that the acquisition will be financed by approximately 5 billion euros in share sales and debts.

"The sale of ⁇ Schenker ⁇ is an important step in this direction," German Transport Minister Volker Wissing said in a statement, noting that ⁇ German Railways focuses on railway transportation in Germany, which is the main business of ⁇ Schenker ⁇ .

Employment in Germany is alarming: Companies begin to plan for layoffs

The German Institute for Economic Research (Ifo) published the results of the German Business Survey in August. In a statement on the results of the survey, it was stated that companies in Germany were more cautious in their personnel planning. The Employment Barometer, which was 95.3 points in July, was reported to have declined to 94.8 points in August.

Klaus Wohlrabe, Director of the Ifo Surveys Centre, said: "Weakness in the economy is also reflected in employment development. Lack of orders causes companies to curb recruitment. ⁇ he said.

According to the survey, the Employment Barometer is declining markedly in the manufacturing sector, while more companies in the industry are considering layoffs.

Ifo stated that the same is true for retail, where there is a lack of customers in stores, and in the construction sector, employees are kept despite the severe crisis.

Germany, one of the leading economies of the European Union (EU), decreased by 0.1 percent in the second quarter compared to the previous quarter. Germany's economy, which expanded in the first quarter of the year, will enter a technical recession if it shrinks three quarters in a row.