Is jumpy Germany poised for trade war?

GERMANY yesterday paved the way for a trade war in the aftermath of Brexit by demanding that the EU quickly wraps up a dozen deals around the world.

In a sign that Europe’s main economic power is concerned about the close ties between Theresa May and Donald Trump, it called on Brussels to begin a deal-making spree.

The timing of the intervention by Germany also highlights growing diplomatic tensions between Angela Merkel and the new US President as her officials issued a veiled criticism of his trade approach.

The German chancellor is understood to be increasingly frustrated by her inability to engage or open up channels of communica- tion with Mr Trump. While Mrs May yesterday became the first foreign leader to meet Mr Trump in the White House, Miss Merkel will instead have a short phone call today.

During a meeting of EU finance ministers in Brussels yesterday, German officials warned that the EU needed to act because of supposed threats posed by Brexit and Mr Trump’s presidency.

A document circulated by finance minister Thomas Steffen urged other EU states quickly to tie up 12 free trade deals with countries including Japan, China, Australia and New Zealand. While many of the discussions have been dragging on for years, Berlin is understood to want to bolster the EU’s economic clout as Brexit negotiations are finalised by sealing the agreements.

In an apparent reference to Mr Trump’s decision to rip up the landmark Trans-Pacific Partnership agreement, the document urged EU leaders to ‘give a timely push against protectionism’.

A German diplomatic source said: ‘We think it is important that the 27 [remaining member states after Brexit] stick together and back up our belief, which is in free trade.’

The official denied that the paper was targeted at the US. EU officials this week warned the UK that it could not begin negotiating trade deals with other countries until after it agreed the terms of its ‘divorce bill’.

Brussels chiefs suggested that advanced talks could breach the obligations under EU treaties. But Chancellor Philip Hammond, who attended yesterday’s meeting, insisted that the UK would ‘abide by the rules’.

Meanwhile, one of the leading candidates to become France’s new president yesterday accused Britain of becoming subservient to the US. The Left-leaning Emmanuel Macron said: ‘Britain lived in an equilibrium with Europe. But now it is becoming a vassal state, meaning it is becoming the junior partner of the United States.’