(BSS/AFP) - Germany`s economy minister on Saturday called for pragmaticism in European Union tariff negotiations with the United States.

US President Donald Trump on Saturday warned that Mexico and the EU would be slapped with 30-percent tariffs starting on August 1, raising the stakes in already tense negotiations with two of the largest US trading partners.

"The EU now must, in the time that remains, negotiate in a pragmatic manner a solution with the United States," Germany`s economy minister Katherina Reiche said in a statement.

"A pragmatic outcome to these negotiations must be reached quickly," she said.

Earlier, Germany`s main industrial body urged a quick resolution.

"President Trump`s announcement is a wake-up call for industry on both sides of the Atlantic," said the Federation of German Industries (BDI) in a statement.

"A trade conflict between two economic areas as closely linked as the EU and the United States harms economic recovery, innovation strength, and ultimately confidence in international cooperation," warned Wolfgang Niedermark, a senior BDI official.

The federation "calls on the German government, the European Commission, and the American administration to now very quickly find solutions and to avoid an escalation."

The US is Germany`s largest trading partner.

With possible tariffs looming, German exports to the US fell by 7.7 percent in May to 12.1 billion euros ($14.2 billion), according to government data released last week.

The drop left German exports to the US at their lowest level since March 2022.