Merkel Ally Kauder Threatens Tariffs on U.S. Goods, Funke Says

Volker Kauder, a senior party ally of German Chancellor Angela Merkel, said Europe should respond in kind if the U.S. implements tariffs on European exports, Funke Mediengruppe reported.

U.S. politicians have to be reminded that trade wars “are not very successful for either side,” Funke cited Kauder as saying in an e-mailed summary of an interview.

Kauder also said Germany should raise its defense spending to 2 percent of gross domestic product as the military faces greater demands because of terrorism and Russia’s efforts to destabilize Europe, according to Funke. Higher tax revenue would finance the increase, meaning social projects wouldn’t have to be cut, Funke cited him as saying.

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