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While the Trump administration pursues industrial policies that prioritize domestic production, the EU finds itself navigating complex negotiations aimed at securing fairer transatlantic trade conditions. Although a temporary pause created space for dialogue, persistent tariffs—particularly on steel and aluminum—continue to strain EU-US relations. In response, the European Union has tried to convey its openness for negotiation, aimed at de-escalation but at the same time communicated its willingness to defend European interests. Key areas of discussion include liquefied natural gas, agricultural products, and defense goods—sectors with both economic and geopolitical relevance. Against this backdrop of transatlantic relations, there are some who advocate a more conciliatory position vis-à-vis China although there has been little movement on fundamental issues.
A recent study for the German Foreign Office by Dr. Samira Sultan and Jürgen Matthes of the German Economic Institute (IW) showcases Germany as key example for why the European trade position is challenged. While Germany still dominates global exports in roughly 180 product groups—mostly in machinery, chemicals, and base metals—this number has declined steadily since 2010. Although certain industrial sectors remain strong, e.g. high-precision instruments, fertilizers, or painkillers, China's exports have risen sharply. China has been expanding its global market share in many of the same categories. The report underlines that Germany’s dominant export position is weakening and warns of long-term erosion without a strategic recalibration.
In this shifting environment, several key questions arise: How should the EU position itself given trade tensions with the EU and China? What are the long-term prospects for Germany’s role as a world export champion? How can Europe ensure continued strength in international trade despite growing external pressures? These and other timely questions will be addressed in an expert discussion.
Key speakers at our KAS-IW event: from the Parliament’s Committee on International Trade (INTA) MEP Miriam Lexmann (EPP/SK), alongside Jürgen Matthes, Head of International Economic Policy at IW as well as Dr. Pierre Gröning, Executive Director EU Liaison Office at the German chemicals association VC and a representative from the European Commission. The discussion will be moderated by Sandra Parthie from the German Economic Institute.
