Strikes Hobble German Railways, Airports

An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights
An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights
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Strikes Hobble German Railways, Airports

An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights
An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights

Germany faced strikes on several fronts on Thursday, as train drivers and airport workers walked off the job, causing chaos for millions of travellers and adding to the country's economic woes at a time of looming recession.

The strikes are the latest in a wave of industrial actions to hit Germany, where high inflation and staff bottlenecks have soured wage negotiations in key parts of the transport sector, including national rail, air travel and public transport, Reuters reported.

Industry has warned about the costs of such strikes, after Europe's largest economy contracted by 0.3% in 2023 and the government warned of a weaker-than-expected recovery.

A one-day nationwide rail strike costs around 100 million euros ($107 million) in economic output, Michael Groemling, head of economic affairs at IW Koeln, told Reuters during GDL's last strike in late January.

Train drivers began a fifth round of strikes in a long-running dispute at 2 a.m. (0100 GMT), after a walkout in the cargo division started on Wednesday evening.

Also on strike were airline ground staff at Lufthansa (LHAG.DE), opens new tab and security staff at some airports. These included Germany's busiest Frankfurt hub, whose operator Fraport said 650 of Thursday's 1,750 planned flights had been cancelled.

The train drivers' walkout, set to last until Friday afternoon, marks the beginning of a series of strikes planned by GDL as it pushes for reduced working hours at full pay.

"The motivation is high to follow through with the conditions that we have set as GDL members," said train driver Philipp Grams at the picket line in Cologne.

Just one in five long-distance trains was running, rail operator Deutsche Bahn said, but passengers showed some understanding.

"I don't like it much, but if it makes a difference, if people want to change something, why not?" said Katerina Stepanenko, standing on the platform at Cologne's main station.

Deutsche Bahn has accused the union of refusing to compromise.

"The other side doesn't budge a millimetre from its maximum position," spokesperson Achim Stauss said.

Economy Minister Robert Habeck, however, said he had lost sympathy for the strikers.

"It must be possible to find a solution and not push your own interests so radically at the expense of other people; I no longer think that's right," he told broadcaster RTL/ntv.

The ADV airport association, meanwhile, warned that strikes in the aviation sector, which on Thursday took place in Hamburg, Duesseldorf and Frankfurt, were damaging Germany's reputation as a centre for business and tourism.

Lufthansa ground staff began a two-day strike on Thursday, and further woes were brewing for Germany's flag carrier after cabin crews voted on Wednesday for industrial action, with the UFO union assessing the next steps.

Reporting its annual results, Lufthansa warned that strikes were a factor that would lead to a higher-than-expected operating loss in the first three months of 2024.



Trump Bails 'Big Progress' in Japan Tariff Talks

Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
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Trump Bails 'Big Progress' in Japan Tariff Talks

Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS

President Donald Trump touted "big progress" in tariff talks with Japan on Wednesday, in one of the first rounds of face-to-face negotiations since his barrage of duties on global imports roiled markets and stoked recession fears.

Japan had not expected the president to get involved in Wednesday's talks, viewing them as a preliminary, fact-finding mission, a sign that Trump wants to keep tight control over negotiations with dozens of countries expected over coming days and weeks, Reuters said.

Tokyo had also been hoping to limit the scope of the talks to trade and investment matters. But announcing his involvement early Wednesday, Trump said thorny issues including the amount Japan pays towards hosting US troops were among discussion topics.

"A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!" Trump said in a social media message that contained no details of the discussions.

Opposite Trump was Ryosei Akazawa, a close confidant of Japanese Prime Minister Shigeru Ishiba who serves in the relatively junior cabinet position of economic revitalization minister.

Speaking to reporters after the talks, Akazawa gave few details but said the parties had agreed to hold a second meeting later this month and that Trump had said getting a deal with Japan was a "top priority".

Exchange rates, which the Trump administration has said Japan and others manipulate to get a trade advantage, were not part of the talks, Akazawa added.

The dollar strengthened against the yen after his remarks on forex, up around 0.5% on the day. Tokyo denies it manipulates its yen currency lower to get make its exports cheaper.

Akazawa held a 50-minute meeting with Trump at the White House before another session with his Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer that stretched to almost an hour and a half, according to Japanese readouts of the talks.

Japan's prime minister, who has previously said he won't rush to reach a deal and does not plan to make big concessions, sounded a more cautious tone speaking to reporters later in Tokyo.

"Of course, the negotiations will not be easy going forward, but President Trump has stated that he wants to give top priority to the talks with Japan," Ishiba said.

Italian Prime Minister Giorgia Meloni heads to the White House on Thursday to discuss tariffs imposed on the European Union with Trump, while Bessent has invited South Korea's finance minister to Washington for talks next week.

FIRST MOVER ADVANTAGE

Trump has long complained about the US trade deficit with Japan and other countries, saying US businesses have been "ripped off" by trade practices and intentional efforts by other countries to maintain weak currencies.

Japan has been hit with 24% levies on its exports to the United States although these rates have, like most of Trump's tariffs, been paused for 90 days. But a 10% universal rate remains in place as does a 25% duty for cars, a mainstay of Japan's export-reliant economy.

Bessent has said there is a "first mover advantage" given Washington has said more than 75 countries have requested talks since Trump announced sweeping duties on dozens of countries - both friend and foe - earlier this month.

Akazawa declined to comment on the matter, adding only that he strongly requested a revocation of the tariffs and that he believed Washington wanted to secure a deal in the 90-day window.

Washington is hoping to strike deals with countries that would cover tariffs, non-tariff barriers and exchange rates, Bessent has said, though Tokyo had lobbied to keep the latter separate.

Trump earlier this month lambasted Japan for what he said was a 700% tariff on rice, a figure Tokyo disputes. Levies on autos are particularly painful for Japan as they make up nearly a third of shipments to the US, its biggest export market.

Japan hopes that pledges to expand investment in the United States will help to convince the US that the allies can achieve a "win-win" situation without tariffs.

Possible Japanese investment in a multi-billion dollar gas project in Alaska could also feature in tariff negotiations, Bessent said before Wednesday's talks.

"It sounds like the Trump administration really does want a quick deal, which suggests it will be a less substantive deal," said Tobias Harris of Japan Foresight, a political risk advisory.

"My baseline is that if the US really starts making demands on agriculture and maybe also on some of the auto regulations, it becomes a lot more contentious and hard to do quickly."