Trade dispute with the USA: Bundesbank President Joachim Nagel warns of meltdown on the stock markets

Finance Minister Lars Klingbeil (47) and Bundesbank President Joachim Nagel (58) are warning of renewed turbulence on the stock markets if the trade dispute with the USA is not resolved. "We must resolve the current trade conflicts as quickly as possible for the benefit of all," the SPD leader said on Thursday at a meeting of the seven leading Western industrial nations ( G7 ) in Banff, Canada.

Nagel spoke of a meltdown in the markets that became apparent in April, when US PresidentDonald Trump (78) imposed high special tariffs on almost all trading partners. Many of these tariffs against China and the EU have now been suspended for 90 days to allow time for negotiations.

"We need more international cooperation," said Klingbeil. This includes free trade. "US tariffs threaten jobs and economic strength on both sides of the Atlantic." The EU Commission, which coordinates trade policy in the European Union, must now make an effort and find a solution with the US. The EU would ideally prefer to eliminate all industrial tariffs and reach a free trade agreement with the US in the longer term.

Nagel said that, fortunately, the near meltdown on the markets had not continued. The US side, of course, also saw the heavy losses on the stock markets. "In my view, the message in April was so strong that it finally got through to everyone involved." That's why the talks in the Canadian Rockies went better than expected. Meanwhile, the German stock index, the DAX, has already reached new record highs.

Klingbeil met with US Treasury Secretary Scott Bessent (62) for the first time in Banff for a one-on-one meeting. "It was a good conversation." Bessent invited him to come to Washington soon. "We need some movement in the negotiations now." His impression is that the US has understood this and drawn appropriate conclusions, Klingbeil said.

Bessent also shares the desire to resolve the uncertainties triggered by the trade war. The EU must seek dialogue, but also prepare countermeasures. In Banff, they took a few steps toward each other.

In the joint final statement, the G7 states stated that if there is no ceasefire in Ukraine , consequences would be considered. This could include tougher sanctions against Russia . Russia's "brutal war" was sharply criticized. They stated that they would continue to provide unconditional support to Ukraine.

Experts had feared in advance that the differences with the Trump administration might be too great to agree on a final document. Trump, who has confirmed his participation in the G7 summit in June, had recently repeatedly threatened to cut off aid to Ukraine. The frozen Russian assets are still not to be released. However, confiscating them, as some are demanding, is currently not an option within the G7.

The statement also mentions the high level of political uncertainty, which is detrimental to growth. However, there has already been some easing, and further progress is being made. "We recognize that high levels of uncertainty can have an impact on the economy and financial stability." The document also states that the G7 group intends to address excessive imbalances in the global economy.

The G7 meeting also discussed lowering the price of Russian oil from the current $60 per barrel. An EU representative said the US was "not convinced" by the EU Commission's proposal, which could envision a new cap of $50. The US argued that oil prices were already falling, which was hurting the Kremlin, the EU representative said. However, the debate will continue.