EU -gradual approach – USA In terms of their commercial dispute, its president sees BundesbankJoachim Nagel.
The US government’s trade war will be at the heart of the meeting of the top seven Western industrial countries (G7). “My impression is that people are starting to come closer to some issues, better understanding each other,” Nugel (Bundesbank) told ARD yesterday (21.5.25) on the sidelines of G7 talks at the Banff Canadian resort. “But there are still some obstacles that need to be overcome. There is still a lot of work to do. “
Nagel stressed that there are no winners in the conflict. “We have to work here.” The US will now better understand that. “I’m a little more confident than I was probably a few days ago.”
US President Donald Trump imposed high special duties on almost all commercial partners in April. This has in the meantime caused serious upheavals on the stock markets. Some of the duties have now been suspended for 90 days to give time for negotiations, including the EU. Nagel said uncertainty is hurting the economy everywhere. For this reason, agreement is required as soon as possible.
After two years of recession, the financial experts had just predicted that Germany would remain stagnant in 2025. As a result, the previous forecast was reduced. According to Nagel, the first quarter of 2025 could be better than expected due to the pull-forward effects in view of the duties already afraid of then. However, the second quarter would be worse then. The German government’s planned mass investment in infrastructure and defense would find a positive response internationally. They could contribute to return to growth rate of at least 1% in 2026.
The US was represented in Banf by Finance Minister Scott Bessed, in which Trump has commissioned the negotiation of many of the trade talks. It is not considered a hard -core under the Trump government. Nugel told ZDF that he found him very constructive and willing to hear in Banf. The discussions were good, but also difficult. He did not realize a division of the G7 team into six states against the US, Nagel said. The discussions were constructive and promotional.