German finance minister warns US against trade war

Olaf Scholz says tariffs would hurt both countries

German Finance Minister Olaf Scholz has warned the United States against imposing tariffs on European goods, saying it would hurt both countries. Scholz made the comments in an interview with the German newspaper Handelsblatt, published on Saturday. He said that tariffs would "not solve any problems" and would only lead to "retaliation" from the European Union.

Scholz's comments come amid growing tensions between the US and the EU over trade.

The US has threatened to impose tariffs on steel and aluminum imports from the EU, and the EU has said it will retaliate with tariffs on US goods. Scholz said that a trade war would be "a lose-lose situation" for both sides.

"We should not underestimate the risks of a trade war," Scholz said. "It would hurt our economies and it would hurt our jobs."

Scholz's comments were echoed by other German officials, including Chancellor Angela Merkel. Merkel said in a speech on Friday that a trade war would be "a mistake" and that the EU should work with the US to resolve their differences.

The US and the EU are the world's two largest trading partners, and a trade war between the two would have a significant impact on the global economy. The US has already imposed tariffs on steel and aluminum imports from China, and China has retaliated with tariffs on US goods.