BERLIN (Reuters) – US President Donald Trump’s protectionist approach to trade has the potential to ignite a trade war, the German DIHK Chambers of Commerce warned yesterday, adding that German companies were among the biggest job creators in America.
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Germany is concerned that the US administration’s push to fix the causes of US trade deficits and to clamp down on countries that abuse trade rules could hurt its exporters.
“We live in a world where a trade war cannot be ruled out,” said Volker Treier, who heads DIHK’s foreign trade unit.
Divisions on trade are expected to cloud the G20 summit that Chancellor Angela Merkel will host in Hamburg this week, attended by Mr Trump and President Xi Jinping of China, whose cheap steel exports the US administration wants to target.
US officials have lamented their country’s trade deficit with the United States which has nearly doubled in the past 10 years from some 28.8 billion euros in 2006 to 49 billion euros in 2016.