BRUSSELS, May 26 (WSH) —As trade tensions with the United States escalate under President Donald Trump’s renewed tariff threats, German Chancellor Friedrich Merz has warned that the European Union may consider retaliatory action—potentially targeting American tech giants—if no resolution is reached.
Speaking on Sunday, Merz stated that while Germany hopes to de-escalate tensions and reduce tariffs, the EU must be prepared to defend its interests, particularly in the area of services trade, where the U.S. maintains a surplus. “We’ve so far protected American tech companies well in Europe, but that can change,” he said. “We don’t want escalation—but we won’t hesitate to act if necessary.”
According to 2023 data from the European Commission, the EU had a goods trade surplus of €156.6 billion with the U.S., but a €108.6 billion deficit in services.
Trump Threatens 50% Tariff, EU Stands Firm
Last week, Trump threatened to impose a 50% tariff on EU imports beginning June 1, though he later postponed the implementation to July 9 after speaking with European Commission President Ursula von der Leyen. Merz backed von der Leyen’s position, asserting that Germany would not seek a separate deal with Washington but instead act in unity with other EU member states.
“If necessary, we will take steps,” Merz emphasized. “We won’t react impulsively, but we cannot remain passive if unfair measures are taken.”
EU Preparing Countermeasures
The EU has already prepared a response in case talks with Washington fail. It is considering retaliatory tariffs on €21 billion worth of American goods—initially drawn up in response to steel tariffs—and has compiled a broader list targeting €95 billion in additional U.S. exports. This could affect Boeing aircraft, American cars, and bourbon whiskey, among others.
While Trump accuses the EU of exploiting the U.S. and erecting trade barriers, European leaders continue to advocate for dialogue, but say they won’t rule out strong countermeasures if necessary.
Strategic Shift in EU-U.S. Relations
Merz, once optimistic about establishing a strong rapport with Trump, now strikes a more cautious tone amid diverging views on trade and foreign policy—including on Russia. “From a European perspective, tariffs hurt everyone,” Merz said. “But for Trump, they’re a tool of economic warfare: ‘If Europe’s economy suffers, America benefits.’”
As the July deadline approaches, both sides appear locked in a high-stakes standoff that could reshape transatlantic economic relations.
