Germany and France are rallying fellow EU member states to support a firm response to U.S. tariffs unless Washington backs down, as the bloc takes a tougher stance ahead of the August 1 deadline for reaching a trade agreement.
اضافة اعلان
According to sources cited by the Financial Times, Berlin—once a key negotiator with the Trump administration to reduce trade barriers—now seeks to issue a strong retaliatory threat. Berlin has joined forces with Paris, which has long advocated gaining leverage over Trump by targeting American companies with retaliatory tariffs.
German Chancellor Friedrich Merz is hosting French President Emmanuel Macron in Berlin today, Wednesday.
French Industry Minister Marc Veracci, speaking in Berlin on Monday before meeting with his German counterpart Katharina Reiche, stated:
“We need to change our negotiation strategy. We must be ready to respond and consider any option that could alter the course of talks.”
Senior European Commission officials, who lead the bloc's trade policy, met with ambassadors of EU member states to discuss deploying the so-called "anti-coercion instrument"—a trade “bazooka” that has never been used before. This tool would allow Brussels to take actions such as banning U.S. companies from public tenders, suspending intellectual property protections, and restricting imports and exports.
While Germany and France support activating the mechanism, some member states remain wary of provoking a severe response from Trump.
One EU diplomat noted a “silent majority” opposing the move, while another warned:
“It would be nuclear. The situation is extremely volatile, and it’s unclear whether member states truly support it.”
The Commission can only proceed if a qualified majority of member states back the move. However, Trump’s recent message threatening 30% "reciprocal" tariffs starting August 1 has intensified opposition. Originally, the tariffs were expected to rise to 20%, up from the current 10%.
One official said the letter “exacerbated tensions among member states.” Another added that Germany had “done a 180-degree turn in just a few days,” and that many countries now “want something tangible on the table to gain leverage.”
Importantly, triggering the anti-coercion tool would only launch an investigation, not immediate actions. If the Commission determines the U.S. is coercing the EU, it could recommend retaliatory steps subject to member-state approval.
The Financial Times also reported last Friday that Trump rejected a proposed framework agreement to freeze the current 10% tariff rate, favoring instead a permanent tariff of at least 15%.
The EU also seeks exemptions from the 25% sectoral tax on cars and auto parts and 50% duties on steel and aluminum.
U.S. Treasury Secretary Scott Peasant told Fox News on Tuesday:
“August 1 is a hard deadline,”
warning that tariffs will shift to a full “reciprocal” level afterward.
Diplomats noted that in such a case, the EU would likely trigger its already-approved tariff package targeting $21 billion (€21B) in U.S. imports—including chicken and jeans—on August 6.
Two diplomats added that a second wave of retaliatory tariffs—on $72 billion (€72B) worth of American goods, including Boeing aircraft and bourbon—would be voted on by August 6 and could take effect the next day if passed.
These measures are considered a last resort.
“Naturally, they would also hurt EU companies,” one diplomat said.
“Nobody wants to see a transatlantic trade spiral.”
The Commission is also drafting a third list of retaliatory actions targeting U.S. services, which may include digital services taxes and levies on online advertising revenues, according to a source familiar with the latest proposal.
European Commission trade spokesperson Olof Gill stated that no countermeasures will be implemented before August 1, emphasizing:
“Until then, our focus will remain on negotiations—that’s our current priority.”
