The German chemical industry has called on the EU to "keep its cool" in response to the new US duties, warning that "a spiral of escalation will only increase the damage".

"We regret the decision of the US government," said the Association of the German Chemical Industry (VCI), which urged Brussels to maintain a "close dialogue" with America, the biggest export market for the German chemical industry.

The VCI, which represents industry giants such as Bayer and BASF, said the EU should "remain flexible in its response" to the tariffs.

"Our country should not become a pawn in the escalating trade war," the association said, adding that "the goal should be a mutually fair solution - for Europe and the US".

"The United States is and remains a central trading partner for Germany," it said.

The United States is by far the most important export market for German chemical products outside the EU and takes almost a quarter of the country's pharmaceutical exports.

The chemical industry is Germany's third-largest industrial sector. Together with the automotive industry, it is particularly vulnerable to the effects of the new US tariffs.

Both sectors have already faced increasing competition from China in recent years, as well as rising production costs. | BGNES