BERLIN (Reuters) - German Finance Minister Olaf Scholz on Friday defended his balanced budget plan for this year, saying that fiscal policy should be planned while bearing in mind that restrictive trade policies could hit tax revenues.
“If we look at the trade development, it is justifiable to be careful in budget planning,” Scholz said during a news conference.
Scholz also said that an escalating trade dispute between the United States and its partners would hit the world’s largest economy.
“The danger that one hurts himself is higher than hurting others,” he said in reference to U.S. President Donald Trump’s decision to impose tariffs on imports from several countries, including China and the European Union.
Reporting by Tom Koerkemeier; Writing by Joseph Nasr; Editing by Thomas Escritt