German industrial, trade associations urge solutions to Trump's tariffs

Industrial and foreign trade associations in Germany -- the largest exporter of goods to the United States among European Union countries -- on Saturday warned of further escalation of the trade conflict and urged quick solutions through practical negotiations, after U.S. President Donald Trump announced that 30 percent tariffs will be imposed on the EU as of Aug. 1.

The German Association of the Automotive Industry (VDA) said that extra costs for German carmakers and suppliers are already in the billions, and the number is growing, while a further escalation of the trade conflict with the U.S. is looming.

The Federation of German Industries (BDI) said in a statement that Trump's latest tariff announcement is "a wake-up call for industry on both sides of the Atlantic," urging the German government, the European Commission and the U.S. administration to quickly find solutions and avoid an escalation.

Europe should not be intimidated by tariff threat of the United States, and should soberly seek solutions through negotiations on an equal basis, said Germany's Association of Wholesale, Foreign Trade and Services.

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 14 pips to 7.0078 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.