German Finance Minister Jörg Kukies has expressed significant concerns regarding potential new tariffs being considered by the United States, with an announcement from President Donald Trump anticipated soon.

Kukies indicated that such tariffs could adversely affect not only the American economy but also the European economy, specifically highlighting that increasing car prices in the U.S. would impact consumers.

This concern is particularly relevant as German automakers produce a greater number of vehicles within the U.S. than they bring in from Europe.

'It will be a substantial adverse impact for everyone affected,' Kukies remarked.

The German government interprets the forthcoming announcement as an opportunity to initiate negotiations.

Kukies stressed the need for open dialogue, advocating for 'partnership-kind negotiations' with the Trump administration that could facilitate tariff reductions.

In ongoing coalition discussions about forming a new German government, the Social Democratic Party (SPD) and the Christian Democratic Union/Christian Social Union (CDU/CSU) are reviewing the possibility of establishing a free trade area between the European Union and the United States, which would entail an elimination of tariffs altogether.

'That takes care of all the asymmetries, because we will reduce all tariffs to zero,' Kukies stated, asserting that zero tariffs represent 'the best competitiveness enhancing measure for both sides.' He emphasized the notion that a mutually beneficial agreement should prioritize balance and the enhancement of free trade.

Further, Kukies argued that such agreements could lead to efficiencies, economies of scale, and additional benefits derived from standardization and mutual access to markets.

In spite of a generally optimistic view of potential negotiations, he acknowledged the complications introduced by Washington's recent inclination towards imposing higher tariffs.

He described the pursuit of a free trade agreement as 'an aspirational goal,' emphasizing the importance of conveying Germany's readiness to consider all avenues for reducing tariffs.

Just last week, President Trump declared a permanent 25% tariff on imported cars and light trucks, set to take effect on April 2. Trump has consistently promoted policies aimed at addressing perceived trade imbalances, positing that U.S. goods encounter steeper tariffs abroad compared to American tariffs on imports.

Economists have indicated that the United States benefits from existing trade imbalances, primarily due to the dollar's dominant role in global transactions, yielding significant economic advantages.