Germany is calling on the European Union to prepare strong retaliatory measures if ongoing trade talks with the United States collapse. The warning comes as the Biden administration signals a possible 30% tariff hike on European goods, a move that could escalate into a full-blown trade war unless an agreement is reached by August 1.
German Finance Minister Lars Klingbeil emphasized that while Berlin supports open dialogue and negotiation, the EU must defend its economic interests and workers if pushed too far. He stated that Europe should not accept unfair trade practices and must be ready to respond “decisively and united” if Washington imposes new duties.
The looming tariff threat is part of a broader U.S. strategy to reduce trade imbalances. However, European officials argue that such unilateral moves risk damaging transatlantic ties and disrupting billions of euros in daily trade. At stake is an estimated €4.4 billion worth of goods exchanged each day between the EU and the U.S., which could be severely impacted by the proposed tariffs.
The European Commission, led by President Ursula von der Leyen, has already delayed a previously planned response to U.S. tariffs, opting instead to continue negotiations through the end of July. However, the Commission has not ruled out activating its “anti-coercion instrument,” a powerful tool that would allow the EU to target a broader range of U.S. sectors, including services and procurement.
There are divisions within the EU on how to proceed. Countries like Germany and Italy are pushing for a diplomatic resolution, wary of the economic fallout from a tariff war. On the other hand, nations such as France and Denmark are advocating for immediate and forceful retaliation to maintain the bloc’s credibility on the global stage.
EU Trade Commissioner Maroš Šefčovič warned that the U.S. plan to hike tariffs to 30% would effectively cripple the flow of goods across the Atlantic. He stressed the urgency of finding a resolution before the deadline, adding that both sides must act in good faith to avoid long-term damage.
As the August 1 deadline approaches, businesses across Europe are bracing for potential fallout. Many fear that tariffs will lead to job losses, higher prices, and decreased competitiveness for EU products in the American market.
In parallel, the EU is also engaging with trade partners like South Korea in an attempt to diversify its economic alliances and reduce reliance on the U.S. market. These efforts highlight the broader strategy of safeguarding European industry against future protectionist threats.
The coming weeks will be critical. If no fair agreement is reached, the EU appears ready to launch a coordinated and robust response—one that could reshape the future of international trade relations between two of the world’s largest economies.