Fair trade urged as tariffs slammed

MUNICH/LISBON — Rising protectionist measures, particularly punitive tariffs, are undermining global industrial cooperation, European industry experts say, adding that US tariff policies mark another step in a worrying trend toward fragmentation of global trade.

Hubert Aiwanger, Bavaria's deputy minister president, said that US tariff hikes have hit German carmakers hard.

"Over the past few months, German auto exports were hit with tariffs of up to 27.5 percent, compared with just 2.5 percent previously," said Aiwanger, whose state is a hub for Germany's auto industry.

"Although a recent deal between the United States and the EU brought the rate down to 15 percent, the impact is still very painful and results in billions of euros in losses annually."

Bavaria has long been a leading exporter of vehicles to the United States. However, financial reports for the first half of 2025 from BMW and Audi, both headquartered in Bavaria, showed a sharp decline in profits.

Aiwanger warned that high tariffs not only hurt German and European industries but also drive up prices for consumers in the US.Such policies, he said, are ultimately counterproductive and risk creating a lose-lose outcome for the global economy.

"We oppose high tariffs imposed by the United States," Aiwanger said. "The best solutions come from fair competition, not artificial barriers."

Bernardo Mendia, secretary-general of the Portugal-China Chamber of Commerce and Industry, has criticized US tariff policy, saying it marks another step in a worrying trend toward fragmentation of global trade.

These tariffs, which heavily penalize European exporters, including Portuguese businesses, are "particularly asymmetrical" as they were imposed unilaterally by Washington, Mendia has said.

For Portugal, the impact will be felt mainly along value chains where the country serves as an indirect supplier to European industrial sectors such as automobiles and machinery. Those sectors will now face higher costs when accessing the US market, he said.

Mendia said what is even more concerning is the geopolitical backdrop, in which the US, rather than promoting multilateral cooperation, has chosen protectionist steps with extraterritorial effects, exerting pressure on both allies and competitors.

Mendia said the tariffs run counter to the global development priorities of balanced interdependence, economic sustainability, and inclusive growth driven by multiple centers. As a country committed to openness and multilateralism, Portugal will continue to defend a fairer and more predictable international trading system, he said.

Xinhua