The European Union is scrambling to formulate a robust response to former U.S. President Donald Trump’s recent threat to impose tariffs on Germany and seven other European nations, raising the specter of a trade war and prompting speculation about an emergency EU summit in the coming days. The escalating tensions directly threaten a delicate trade agreement painstakingly negotiated between the EU and the United States over the summer.
That agreement, designed as a reciprocal measure, envisioned a 15% tariff on most EU imports into the U.S., in exchange for the EU eliminating tariffs on many U.S. imports. The prospect of this deal unraveling has already sent ripples through European markets.
Bernd Lange, Chairman of the European Parliament’s Committee on International Trade, voiced strong concerns in an interview with “Der Spiegel”, stating that the perceived unreliability of the U.S. commitment undermines the foundation for continued trade relations. “If there’s no reliability across the Atlantic that the deal will be honored, we cannot justify setting U.S. products to zero percent tariffs” he stated, emphasizing a shift away from “business as usual.
The European Parliament was scheduled to vote on the previously negotiated trade deal next week. However, following Trump’s tariff threat, the likelihood of ratification has plummeted. This parliamentary deadlock further complicates the already fragile situation.
Lange is now explicitly advocating for the swift implementation of the EU’s Anti-Coercion Instrument (ACI). This instrument is designed to counter situations where states leverage trade to exert political pressure. Critically, the ACI goes beyond simply retaliatory tariffs, enabling the EU to potentially suspend patents and other measures against countries employing coercive trade practices. The invocation of the ACI would signify a substantial hardening of the EU’s stance, demonstrating a willingness to defend its economic interests against what is being framed as politically motivated trade aggression. The move underscores a growing anxiety within the EU regarding the potential for further disruptions to global trade stability under a potential renewed Trump administration.