Export Industry Calls for 'Trade NATO' Against Trump's Tariffs - Germany's exports slump as U.S. tariffs and Chinese competition bite
High U.S. Tariffs, Chinese Competition: German Firms Face Pressure in Global Markets—Trade Association Chief Proposes Bold Solution
Germany's embattled export sector is calling for an international alliance to defend free trade against punitive tariffs. "When tariffs are wielded as a political weapon, Europe must push back together," said Dirk Jandura, president of the Foreign Trade Association (BGA). He has proposed a "Trade NATO"—a coalition of the EU and like-minded nations—to counter tariffs of the kind imposed under former U.S. President Donald Trump. "Power politics through tariff diktats must no longer be tolerated," he declared.
The BGA warns that German exporters are increasingly under siege in global markets. While German exports grew by 1% in 2025, the association forecasts just a 0.6% rise in 2026—far outpaced by a projected 3% surge in imports. "The strong euro is eroding the competitiveness of German suppliers in price-sensitive markets and eating into their margins," Jandura said.
His proposed "Trade NATO" would serve as a bulwark in an era of rising protectionism, uniting the EU with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), including Australia, Canada, and Japan. Notably absent from Jandura's vision: Russia, the U.S., and China.
Modeled after NATO's Article 5 collective defense clause, the alliance would treat illegal tariffs—those violating World Trade Organization (WTO) rules—as an attack on all members, triggering joint countermeasures. These could include retaliatory tariffs, digital taxes, or other economic tools, Jandura told Handelsblatt.
The proposal comes amid an escalating tariff dispute with the U.S., which saw German exports to America plummet by over 9% in 2025. Shipments to China have also fallen sharply, while Beijing—facing U.S. tariffs—has flooded Europe with low-cost goods. Meanwhile, the WTO, once the guardian of free trade, has been paralyzed for years, its enforcement mechanisms repeatedly blocked by key members, including the U.S.
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