Bundesbank's Nagel sees progress on tariffs but work to be done
G7-FINANCE/GERMANY-NAGEL (PIX):Bundesbank's Nagel sees progress on tariffs but work to be done
By Christian Kraemer
BANFF, Alberta, - There has been progress towards a solution on a damaging tariff dispute with the United States but there are more hurdles to overcome, the Bundesbank's President Joachim Nagel told German television on Wednesday from the G7 meeting in Canada.
Speaking to the ARD broadcaster, European Central Bank policymaker Nagel said the United States was showing better understanding of Europe's point of view and that there was acknowledgement on both sides that trade conflicts have no winners.
Finance ministers from the Group of Seven industrial democracies are meeting in the mountain resort town of Banff, Alberta, against the backdrop of a global trade dispute after President Donald Trump unleashed sweeping tariffs.
"My impression here is that we are beginning to come closer together on certain issues, to better understand each other, but there are still some hurdles to overcome. So, there is still a lot of work to be done," Nagel said.
"I also believe that the U.S. side now understands some things better, and I am a little more confident than I perhaps was a few days ago," he added.
The German Council of Economic Experts had earlier cut its forecast for Europe's largest economy, expecting it to stagnate this year during a "pronounced phase of weakness."
Nagel said the projection was not a surprise, given the damaging uncertainty of the tariffs. He said first-quarter growth could be better than expected but saw growth worsening in the second quarter as the effects of the tariff dispute are felt.
He looked forward to stronger growth of 1% or more in 2026, depending on how quickly the government implemented planned fiscal measures.
In a separate interview with German broadcaster ZDF, Nagel said U.S. Treasury Secretary Scott Bessent had been constructive.
Nagel said he did not see a split in the G7 group into six countries against the United States. "It's a G7."
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