Germany calls for calm negotiations amid worsening trade relations between the EU and the U.S.

The German finance minister, Lars Klingbeil, called on Sunday for calm talks to stop a growing trade dispute between the European Union and the United States, after President Donald Trump warned he would impose a 50% tariff on every EU import starting June 1.

"We do not need more provocations now, but serious negotiations," Klingbeil told the German newspaper. He said he had already spoken "precisely" about the matter with U.S. Treasury Secretary Scott Bessent.

"U.S. tariffs are jeopardizing the U.S. economy at least as much as the German and European economies," he said.

"This trade conflict harms everyone and must end quickly." However, he added that Europe is "united and determined to defend our interests."

Klingbeil's warning coincided with the mood in Brussels after Trump's online threat on Friday night to raise tariffs. In his post, the president said the 27-nation bloc was dragging out the process and treating U.S. companies unfairly, calling the EU "difficult to deal with" in "discussions that go nowhere."

The threat shook the markets. On Friday, the S&P 500 index and the Stoxx Europe 600 index fell by approximately 1%. The dollar slipped to its lowest point since 2023, while U.S. Treasury yields fell as investors sought safety.

Behind the public exchange lies a document from the EU that was sent to the White House early last week. People familiar with the document say that Brussels offered to reduce or eliminate tariffs on industrial goods, give more leeway to U.S. agricultural exports deemed non-sensitive, and work together on building AI data centers.

The 11-page offer also suggested joint efforts in shipbuilding, port infrastructure, and an energy partnership encompassing gas, nuclear energy, and oil.

Although the text avoids naming China, it refers to "non-market practices." It also mentions potential joint purchases of key goods such as AI chips and cooperation in 5G and other connectivity tools.

Tensions between the U.S. and the EU are rising

Trump rejected the proposed plan, writing in his social media post that negotiations were "making no progress" and reiterated his promise to impose the 50% tariff on June 1. Speaking later, Bessent said that the EU's proposal was "worse than those of other countries" but added that he hoped the president's warning would "spark a fire in the EU."

The two main negotiators, the EU's chief trade negotiator, Maros Sefcovic, and his U.S. counterpart, Jamieson Greer, were still scheduled to speak by phone on Friday, officials confirmed, but no progress was announced after the call.

EU officials say their offer responds to what one previously described as a U.S. "wish list" of unrealistic and unilateral demands. Brussels wants Washington to promise not to impose new tariffs while negotiations continue. It is willing to reduce tariffs in stages or through a quota system that would keep the higher levies only once imports exceed a certain volume.

The EU also proposes mutual recognition agreements in areas such as services and non-sensitive agricultural products. Under such agreements, each party would accept the other's standards without changing their own rules.

At the same time, Europe has prepared a safety net. The bloc has prepared tariffs on U.S. goods worth 21 billion euros (about 23.9 billion dollars) in response to previous U.S. tariffs on metals, although its implementation has been paused until mid-July. Officials say that date could be moved up if negotiations fail.

If the dispute worsens, there is an additional list of tariffs on goods worth 95 billion euros that is on standby. These tariffs would target industrial goods, including Boeing aircraft, cars made in the U.S., and Kentucky bourbon.

Some member states want the European Commission to prepare even broader measures if Trump expands his threat to sectors like computer chips and pharmaceuticals.

With the calendar moving toward the June 1 deadline and the EU's own mid-July activation date, diplomats from both continents say a breakthrough is needed within weeks. Until then, companies on both sides are preparing for higher costs and new uncertainties.

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