Donald Trump’s (79) announcement that he would impose tariffs on eight European countries caused a lot of criticism in business and politics. EU Commission President Ursula von der Leyen (67) and Council President António Costa (64) warned of the consequences during the signing of the Mercosur agreement in Paraguay. “Tariffs would undermine transatlantic relations and risk a dangerous downward spiral,” both said on social media. “Europe will continue to act in a united and coordinated manner and work to preserve its sovereignty,” it said.
In an unprecedented move, Trump announced additional tariffs from February early Saturday evening, citing the conflict over Greenland Germany and seven other European states – all of them NATO countries. The staggered tariffs should apply until an agreement is reached on the complete purchase of the Arctic island, Trump wrote on Truth Social. The US President has repeatedly made it clear that America wants to annex the island – which the European NATO partners vehemently reject. Greenland is largely autonomous and is part of the territory of NATO member Denmark. Trump is also offended by the fact that Germany and other European NATO states recently sent soldiers to the island for a reconnaissance mission before a military exercise.
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The joint statement from EU leaders said the exercise responded to the need to strengthen security in the Arctic and did not pose a threat to anyone. Dialogue remains crucial and the EU is committed to building on the agreement between the Kingdom of Denmark and the EU USA to build the process that has begun. After talks between representatives of Denmark, Greenland and the USA on Wednesday, the US side said it had agreed to set up a working group to conduct technical discussions about the purchase of Greenland.
Customs deal is on the brink
The EU actually agreed on a deal with the USA in the customs conflict last year, which the EU Parliament still has to approve. Accordingly, the US tariff of 15 percent should apply to most European products. Tariffs on US industrial goods, on the other hand, should be completely abolished and barriers to the import of certain foods should be removed.
The head of the European People’s Party (EPP), Manfred Weber (53), said his group supported the customs deal, but approval was not possible at this point in view of Trump’s threats. “The zero percent tariffs on US products must be suspended,” said the CSU politician.
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“The zero percent tariffs on US products must be suspended”: EPP boss Manfred Weber
Photo: Philipp von Ditfurth / dpa
The EPP is the largest political group in the European Parliament. The leaders of the Social Democratic Group and the liberal Renew Group are now also rejecting the agreement with the United States and have posted corresponding statements on
Economists: Hits German industry hard
“A renewed escalation of the trade conflict will hit the German economy and industry hard again, as it creates a lot of uncertainty and further weakens exports,” said the President of the German Institute for Economic Research (DIW), Marcel Fratzscher, to the Reuters news agency on Saturday evening. An additional 25 percent would cost Germany around 0.2 percentage points of growth, said ING chief economist Carsten Brzeski. “But it is the uncertainty that shows once again that exports will not lead the German economy from stagnation to an upswing this time.” The impetus will have to come from public and private investments.
Fratzscher is calling for consequences in view of Trump’s new tariff threats. “It is high time for the EU – and above all the federal government – to engage in global cooperation China and others to stand up to Trump,” said the head of the Berlin DIW Institute. His threat of punitive tariffs to annex Greenland shows Europe’s weakness and inability to act. Europe has constantly given in to Trump in the trade conflict and allowed it to happen instead of standing up for its own interests and global multilateralism. “This mistake is now taking revenge because Trump has recognized Europe’s weakness and inability to act.” He will blackmail Europe until the continent speaks with one voice, shows backbone and acts more intelligently.
Medium-sized businesses: “Now the rule must be: economy first”
There is also sharp criticism of the tariff threats from German business. “The announcement of new US tariffs for certain European countries is grotesque,” said the President of the BGA foreign trade association, Dirk Jandura, on Saturday evening. “The USA is punishing participants in a NATO mission here, which is actually unimaginable. This is a new low in American-European trade relations.” We continue to stand by Denmark, democracy and freedom cannot be wiped away with punitive tariffs. “If we allow tariffs to become a political weapon, everyone loses in the end.” The EU can now show its strength, Jandura told the Reuters news agency: “We need a common answer to this and must not allow individual states to become playthings of US interests.”
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“The costs of these additional tariffs would be enormous for German and European industry – in already challenging times.”: VDA boss Hildegard Müller
Photo: Kay Nietfeld / dpa
The Association of the Automotive Industry (VDA) also reacted with dismay. “The announcements of possible new punitive tariffs by the US President are a renewed and serious burden on transatlantic relations,” said VDA President Hildegard Müller (58). “The costs of these additional tariffs would be enormous for German and European industry – in already challenging times.” What is now crucial is a smart, strategic reaction from Brussels that is coordinated with the affected countries. Quick shots led to escalation and a possible spiral that only produced losers. “There is no doubt that the United States must accept Greenland’s free will,” Müller added.
The Union’s SME and Economic Union (MIT) called for immediate relief for companies. Trump’s announcement has changed the rules of the game, MIT chairwoman Gitta Connemann (61) told the “Rheinische Post” according to the preliminary report. “Now the rule must be: economy first.” Connemann calls for the abolition of the solidarity surcharge, a rapid corporate tax reform and a reduction in electricity tax for all companies and consumers. The export-oriented German economy will be hit to the core by new tariffs.
Republicans also criticize tariffs
There was also resistance to the tariff threat in the USA. The two co-chairs of the Senate’s cross-party NATO observer group, Democratic Senator Jeanne Shaheen (78) and Republican Senator Thom Tillis (65), explained: Such rhetoric helps opponents such as Kremlin chief Vladimir Putin (73) and China’s state and party leader Xi Jinping (72), “who want to see a split in NATO.”
“At a time when many Americans are already concerned about rising costs of living, these tariffs would increase prices for both families and businesses. We call on the administration to end the threats and rely on diplomacy,” the senators’ statement continued.
More on the topic
Representatives of the EU states are meeting this Sunday for a special meeting. Following the US announcements, an extraordinary meeting at ambassadorial level was called for the afternoon, the current Cypriot Council Presidency announced.
It initially remained unclear whether possible countermeasures would be discussed. Since 2023, the EU has had an instrument to defend itself against trade policy pressure. According to the relevant regulation, this is a situation in which a third country tries to persuade the EU or a member state to take a certain decision through trade measures. Counter-tariffs and many other measures are then possible according to the regulation. However, the instrument should only be a last resort.