US duties will hit both German and the US economy has been warned Friday by the new German finance minister, Yorgis Koukis, adding that Berlin is working to prevent a escalating trade war.

The new “tsar” of the German economy raised the alarm for US duty policy, speaking to Retuers after a meeting with his US counterpart, Scott Besed, and other members of the Trump government in Washington.

The United States announced late on Wednesday that 25% of April will enter into force on the imports of cars and certain components on April 3, denying the hopes of some for lower rates or exceptions.

“The highest duties will particularly hit German car manufacturers and the entire German economy. But they will also harm the US economy as they will make imports more expensive and raise prices for consumers in the US, “Koukis said.

Europe’s export companies, especially Germany’s major automakers, are the most exposed to the US trade war.

“At European level, we will continue to work to protect our economy. However, it is also clear that there are only losers in a trade conflict, “he added.