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European leaders are calling for urgent action after the US President Donald Trump issued a dramatic threat to impose 30% tariffs on all EU and Mexican imports starting August 1, escalating the trade tension between Washington and two of its largest trade partners.
European leaders are rallying once again after Trump threatened to impose 30% tariffs on all EU and Mexican imports starting August 1. This had been the recurring theme in the US-EU relationship since the beginning of the second term of the Trump administration. French President Emmanuel Macron on Saturday condemned US President Donald Trump's threat and called on the EU to "resolutely defend European interests".
“France fully supports the European Commission in negotiations,” Macron stated on social media. “The deal must reflect the mutual respect that trade partners such as the EU and US owe one another.” He also urged to prepare for credible countermeasures if no feasible deal is reached before the deadline.
Meanwhile, in Berlin, German officials struck a more measured tone but joined in Macron’s call for swift diplomacy. "The EU now must, in the time that remains, negotiate in a pragmatic manner a solution with the United States," said Germany's Economy Minister Katherina Reiche in a statement. The Federation of German Industries (BDI) echoed the same voice, calling the threat “a wake-up call” for industry and diplomacy alike."
"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 a senior BDI official.
The joint chorus of concern from Paris and Berlin shows a rare alignment when the European Union is suffering from internal divisions over enlargement, energy policy, and defence. However, Berlin seemed more docile and pragmatic compared to Macron's aggressive postures. It remains to be seen whether this can unite the EU's economic heavyweights into urgent action. European Commission chief Ursula von der Leyen reiterated EU will not be “intimidated into accepting unfair terms.”