Almost half of German firms expect worsening trade tensions with US: report

Forty-four percent of German firms expect trade tensions with the U.S. to heighten further, according to a survey from the IW economic institute as reported by Reuters.

Thirty-four percent of firms predict trade relations will not grow worse, according to a Reuters report based on news from the German newspaper chain RND.

The news agency further reported that 41 percent of the firms surveyed said it was unlikely that the Untied States and European Union would reach an agreement. 

{mosads}Last week, the EU commissioner, Cecilia Malmstrom, said that Europe would retaliate if Trump imposed tariffs on European cars.

“Then we will hit back, we can very quickly put together a long list of countermeasures that conform to World Trade Organization rules,” Malmstrom said. 

Trump threatened tariffs on French wine last week, while visiting the nation.

“On Trade, France makes excellent wine, but so does the U.S.,” Trump tweeted. “The problem is that France makes it very hard for the U.S. to sell its wines into France, and charges big Tariffs, whereas the U.S. makes it easy for French wines, and charges very small Tariffs. Not fair, must change!”

In June, Trump threatened a 20-percent tariff on all European cars entering the U.S.

Besides its combat with Europe, the White House has slapped a series of escalating tariffs on Chinese goods.

Beijing has retaliated each time, but the two countries are now resuming trade talks. 

Trump said Friday that “China wants to make a deal” with the U.S.