Germany and France are ramping up pressure on the European Union to prepare retaliatory tariffs against the United States. The reason? A new wave of trade sanctions introduced by Donald Trump’s administration. If the White House doesn’t back off by August 1, transatlantic trade relations could be severely strained.

🔹 Germany’s sudden shift: Once an advocate of diplomacy, Berlin has changed course. Chancellor Friedrich Merz is set to host French President Emmanuel Macron in Berlin for high-level talks on a united front.

🔹 Secret Brussels meetings: Behind closed doors, EU ambassadors have been meeting with European Commission officials. One key item on the agenda is the potential activation of the Anti-Coercion Instrument (ACI) – a powerful yet never-before-used tool allowing the EU to strike directly at companies from foreign nations engaging in economic pressure.

ACI: A Sharp Weapon Dividing the EU

If the EU proceeds with the ACI, it could impose:

🔹 bans on U.S. companies participating in EU public contracts

🔹 the revocation of intellectual property protections for U.S. firms

🔹 frozen trade in targeted sectors

While Germany and France support the move, others remain cautious. “It would be nuclear,” said one diplomat. Another likened the strategy to a weapon that “can be either a bazooka or a sniper rifle” depending on how it’s deployed.

A €100 Billion Tariff Plan: A Step-by-Step Retaliation

Alongside the ACI, the EU has a more traditional plan of action:

🔹 First wave – €21 billion: If the Trump administration doesn’t pull back by August 1, the EU will hit goods like chicken, jeans, and energy products with tariffs. Effective date: August 6.

🔹 Second wave – €72 billion: This round targets Boeing aircraft, bourbon, and other major exports. A vote is set for August 6, with possible enforcement the following day.

🔹 Third wave – U.S. digital services: The Commission is drafting a list of tech-sector targets, including digital services taxes and levies on online advertising — aimed squarely at large U.S. platforms.

Despite these plans, EU officials still hope the U.S. will blink first. “No one wants a downward spiral in transatlantic trade,” one diplomat said.

Brussels: Talks Ongoing, But Time Is Running Out

U.S. Treasury Secretary Scott Bessent told Fox News that “August 1 is a tough deadline”, warning that tariffs will “boomerang back at a reciprocal level” if no agreement is reached. EU officials say this confirms the U.S. isn’t open to compromise.

Tensions escalated further when Trump rejected a proposed framework deal that would have locked in current 10% tariffs. Instead, Washington wants a permanent increase to 15% or more. The EU, in turn, asked for exemptions from 25% tariffs on cars and 50% on steel and aluminum — a request that was denied.

For now, no formal retaliation has begun. European Commission spokesperson Olof Gill said on Tuesday, “We are focused on negotiations for the time being — that remains our priority.” But the clock is ticking, and the ball is in Washington’s court.


#Eu , #TradeWars , #TRUMP , #Tariffs , #Geopolitics

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