European Leaders Divided on U.S. 30% Tariff Notification: 'Counteraction vs Dialogue'

[Financial News] European countries are showing mixed reactions to U.S. President Donald Trump's 30% 'reciprocal tariff' threat. In particular, Emmanuel Macron, President of France, who has not had a good relationship with Trump in the past, emphasized that countermeasures should be prepared at the European level.

On the 12th (local time), Macron posted on social media X, stating, "France, along with the European Union (EU) Commission President, expresses strong regret over the U.S. 30% tariff." He argued that "it is more than ever the Commission's role to firmly uphold the EU's determination to resolutely defend Europe's interests." Macron emphasized that the EU Commission should "accelerate the preparation of credible countermeasures using all means, including trade threat responses, if an agreement is not reached by August 1."

Trump, who had imposed a 10% reciprocal tariff on the EU since April, released a letter on social media on the 12th addressed to Ursula von der Leyen, EU Commission President, declaring that a 30% tariff would be imposed on EU imports starting August 1.

Von der Leyen announced on the 13th, in a meeting with reporters, that the retaliatory measures against the U.S., which were scheduled to be activated on the 14th, would be postponed until early August. The EU had prepared a first retaliatory measure in response to Trump's tariffs on steel and aluminum products earlier this year, but postponed retaliation for further negotiations following the reciprocal tariff announcement and deferral in April. The first retaliation included imposing an additional 10% or 25% tariff on U.S. imports worth a total of 21 billion euros (approximately 33.9 trillion won), which was set to automatically take effect from midnight on the 14th. Von der Leyen emphasized that "we will continue to prepare the response to be perfectly ready."

EU trade ministers plan to gather in Brussels, Belgium, on the 14th to discuss countermeasures. Opinions on the form of response are divided within the EU. Lars Klingbeil, Germany's Finance Minister, emphasized in an interview with local media on the 13th that "serious and solution-oriented negotiations with the U.S. are still necessary." At the same time, he argued that "if negotiations fail, a firm response is needed to protect jobs and businesses within Europe." On the same day, Dutch Prime Minister Dick Schoof stated on social media that the EU must unite and be firm to achieve mutually beneficial deals with the U.S. Some European Parliament members urged a strong response, warning that accepting Trump's 'illegal' tariffs as a new standard could lead him to demand even higher tariffs.

On the other hand, von der Leyen stated on the 13th that "now is the time to negotiate" and "we have clearly stated our preference for negotiations. We will use the remaining time until August 1." In this regard, Germany's Chancellor Friedrich Merz mentioned in an interview with Germany's ARD broadcaster that "last weekend, I had intensive discussions on this issue with Macron and von der Leyen," and "we want to find a solution using the two and a half weeks until August 1." Additionally, Italy's Prime Minister Giorgia Meloni, known to have a close relationship with Trump, argued that "a fair agreement can be reached" and that "it does not make sense to trigger a trade war on both sides of the Atlantic." Ireland's Deputy Prime Minister Simon Harris pointed out that Trump used the tariff increase as part of his negotiation strategy.

 

pjw@fnnews.com Jongwon Park, Reporter