German Finance Minister and co-leader of the Social Democratic Party (SPD) Lars Klingbeil on 5 May 2025. [Sandro Halank/Wikimedia Commons. Licensed under CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/deed.en)]
Politics

Germany and France Reject Trump Tariff Pressure as EU Weighs Response Moves

European leaders signal unity as tariff threats over Greenland intensify tensions

Naffah

Germany and France said they would respond in a united manner to threats of higher U.S. tariffs linked to President Donald Trump’s demand that the United States be allowed to buy Greenland.

The remarks marked an escalation in a dispute that has widened from diplomatic rhetoric to concrete trade measures and emergency discussions at the European Union level.

European leaders framed the issue as one of sovereignty and alliance norms, while signaling a readiness to counter economic pressure without seeking outright escalation.

The comments followed Trump’s vow to impose increasing tariffs on imports from European allies, intensifying pressure over the future of Denmark’s Arctic territory.

Unified European Stance

Speaking in Berlin after meeting his French counterpart, German Finance Minister Lars Klingbeil emphasized that Germany and France were aligned in rejecting what they described as economic coercion.

French Finance Minister Roland Lescure echoed that position, stressing that threats between long-standing allies were unacceptable and undermined transatlantic trust.

Both ministers said Europe remained open to negotiation, but insisted that limits had been reached as tariff threats expanded.

The dispute has drawn in broader EU institutions, with leaders set to convene an emergency summit in Brussels to assess next steps.

Officials described the situation as part of a pattern of mounting pressure rather than an isolated incident.

Trade Tools Considered

Among the options under discussion is a previously suspended package of tariffs targeting €93 billion in U.S. imports, which could automatically take effect in early February.

Another possibility is the EU’s untested Anti-Coercion Instrument, which could restrict access to public tenders, investments, or trade in services where the United States runs a surplus.

Klingbeil signaled Germany’s support for preparing these measures alongside France, despite Berlin’s traditional caution on aggressive trade responses.

“There is a legally established European toolbox for responding to economic blackmail with very sensitive measures. And we should now consider using these measures,” Klingbeil said.

Both ministers stressed that preparation was intended as deterrence, as Europe seeks to project strength while avoiding deeper economic fallout.

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