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In a significant development, the European Union (EU) has outlined a series of countermeasures in response to the escalating trade dispute with the United States. The measures, which include tariffs on US goods, restrictions on digital services provided by American companies, and limits on access to public procurement for US firms in the EU market, have been supported by the German federal government, aligning with France's tougher stance.
The negotiations over the US trade dispute have intensified, as confirmed by Stefan Kornelius, a government spokesman. Chancellor Friedrich Merz held discussions over the weekend with the EU Commission and French President Emmanuel Macron regarding the dispute. The discussions will continue, with the topic set to be discussed during Macron's visit to Berlin on Wednesday.
The EU Commission has prepared a comprehensive list of countermeasures, covering approximately €72 billion worth of American products. These measures are aimed at sectors such as American aircraft, automobiles, and food products, among others, reflecting a strategic choice to impose costs on sectors important to the US economy.
However, Merz has expressed that the implementation of these countermeasures may not be appropriate at this time. Instead, he favours waiting for negotiations to fail before taking such action. The EU as a whole has taken a measured approach to maintain space for dialogue and avoid immediate escalation. The European Commission delayed countermeasures initially to encourage negotiations but will proceed with proportionate counteractions if necessary to protect EU interests.
The EU must be prepared in case of failure in the US trade negotiations, according to Kornelius. The federal government stands behind the Commission's proposals in the US trade dispute, supporting the measures beyond tariffs.
US President Donald Trump has threatened to impose tariffs of 30 percent on European imports after August 1 if there is no agreement by then. The German federal government’s support for the EU's countermeasures fits into a broader EU strategy combining readiness to retaliate with efforts to find a negotiated resolution to avoid damaging supply chains and economic integration.
The exploration of using the EU’s "anti-coercion instrument", which is designed to allow retaliatory trade and investment measures in response to economic pressure from third countries, is also part of the EU's response strategy.
As the US trade dispute continues to be a focus of discussions between Germany and France, it remains to be seen how the negotiations will unfold in the coming weeks. No new information was provided about the implementation timeline of EU countermeasures, and Merz's negotiating goal beyond avoiding the implementation of EU countermeasures remains unclear.
- The German federal government, in alignment with France's position, has voiced its support for the European Union's employment policies regarding the US trade dispute, which include tariffs, digital service restrictions, and access limitations for American companies in the EU market.
- In an attempt to protect EU interests, the European Commission has prepared an extensive employment policy, outlining countermeasures worth approximately €72 billion directed at key sectors such as American aircraft, automobiles, and food products.
- In response to US threats of imposing tariffs on European imports, the EU is exploring the use of its "anti-coercion instrument," a tool designed to implement retaliatory trade and investment measures in response to economic pressure from third countries, as part of its broader strategy to find a negotiated resolution to the trade dispute.
