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G7 summit 'fiasco' creates huge uncertainty among German exporters: DIHK

Reuters  |  BERLIN 

(Reuters) - Germany's of Commerce and Industry said on Monday the escalating trade dispute with the is causing huge uncertainty among German exporters that are also indirectly burdened by U.S. and

U.S. backed out of a joint communique agreed by leaders in at the weekend that mentioned the need for "free, fair and mutually beneficial" trade and the importance of fighting protectionism.

"The trade dispute is currently leading to considerable uncertainty among German companies doing business abroad," Volker Treier, at the DIHK, told

"The summit fiasco showed how deep the political rift is and what dangers could still lurk ahead," Treier added.

The U.S. import tariffs on and aluminium and possible additional duties on automobile imports clearly violate international rules, Treier said.

As Europe's biggest exporter to the and with more than one million German jobs at stake, is desperate to avoid an EU-U.S. trade war.

Treier said that unilaterally imposed U.S. sanctions against and were also increasingly putting a burden on the German

Due to extra-territorial effects of the U.S. sanctions, many German companies are currently winding down operations abroad and stopping efforts to develop new business, he said.

"These irritations are already noticeable in trade with the U.S.," Treier said.

German exports to the United States, its biggest export market after the bloc of countries, have already declined slightly since the beginning of the year.

"This means that the DIHK export forecast of more than 5 percent German export growth in the is already more than questionable," Treier said.

"Companies need reliability for their foreign business. That is why it is so important for the EU to be fully committed to strengthening the WTO and global rules."

(Reporting by Michael Nienaber,; Editing by and Catherine Evans)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, June 11 2018. 20:18 IST