While the #European Commission prepares to impose retaliatory duties on $112bn worth of U.S. exports, major EU corporations are holding backchannel talks with Washington — weakening Europe’s negotiating position.
🤔 What’s going on
⚫ Mercedes, BMW, Volkswagen, LVMH, and Sanofi are communicating directly with Trump’s team, seeking exemptions for themselves
⚫ Lobbyists for Cognac and Irish Whiskey are pushing to remove alcohol products from the EU’s retaliation list
⚫ Of the potential €95bn in tariffs, Brussels may be pressured to reduce that to just €25bn due to corporate and governmental lobbying
📊 Why business is pushing back
📌 U.S.-based production offers higher margins — no one wants to lose access to the American market
📌 Tariffs on U.S. goods could trigger retaliation, raising costs for European automotive and pharmaceutical exports
📌 Many firms have already shifted investments and production to the U.S.: Mercedes moved GLC manufacturing to Alabama; BMW and Volvo have opened new lines
📍 Consequences
⚫ The EU’s weakened stance could hurt its leverage in upcoming trade talks with China
⚫ The principle of collective pressure — a cornerstone of EU strength — is being undermined
Even LVMH’s CEO Bernard Arnault is personally urging Brussels to compromise: “better a free trade zone than a trade war”