With €161 billion in annual exports to the US on the line, Germany now faces the monumental task of shepherding a divided European Union towards a quick implementation of the new trade deal. The agreement’s structure, which makes tariff relief for German cars conditional on pan-EU action, has turned Berlin into the deal’s primary and most desperate champion.
The challenge is immense. Germany must convince its 26 partners to prioritize a legislative proposal that primarily benefits its own economy. This will require significant diplomatic effort to overcome the deep-seated skepticism and outright opposition from countries and industries that feel disadvantaged by the pact.
France’s vocal dissatisfaction over wine tariffs and Italy’s grave concerns about a potential €22.6 billion export loss represent major political hurdles. Germany will need to persuade them that the overall stability of the EU economy and the prevention of a wider trade war are worth the sacrifices the deal demands of their specific sectors.
The coming weeks will be a major test of German leadership within the EU. Its ability to forge a consensus and accelerate the bloc’s legislative process will directly determine when, or if, its crucial auto industry receives the tariff relief it has been promised. The fate of Germany’s export machine now rests on its diplomatic skill in Brussels.