German Chancellor Friedrich Merz announced on Sunday that he is working intensively with European leaders to prevent the implementation of threatened 30 percent U.S. tariffs on European Union (EU) imports set to begin August 1.
Newsweek reached out to the White House via email on Sunday for comment.
Why It Matters
The potential 30 percent tariff represents a significant escalation from previous negotiations, where the EU had been preparing for a 10 percent baseline tariff as recently as July 7. Merz acknowledged that “the German economy would be hit hard by the tariffs,” highlighting the stakes for Europe’s largest economy.
The situation reflects broader challenges in transatlantic trade relations as President Donald Trump has regularly cited a goods trade deficit of about $236 billion in 2024 while pushing Europe to buy more American cars, energy, and defense equipment.
What To Know
Merz told German broadcaster ARD he had discussed the matter “intensively over the weekend with both [French President Emmanuel] Macron and [President of the European Commission] Ursula von der Leyen,” and had also spoken directly with Trump. The chancellor emphasized his commitment to finding a solution within the remaining two-and-half weeks before the deadline.
The current crisis stems from weeks of failed negotiations between the U.S. and its major trading partners. Trump threatened to impose the 30 percent tariff starting August 1, after comprehensive trade deal negotiations collapsed. This represents a dramatic escalation from the EU‘s previous goal of striking a trade deal with a 10 percent baseline tariff by July 9.
The EU had been preparing for multiple scenarios, with European Commission spokesperson Olof Gill previously confirming to Newsweek they were “still aiming for a July 9 agreement in principle.” However, negotiations have deteriorated since then. The EU has retaliatory measures targeting $22.6 billion in U.S. goods already approved, with another package covering $102.2 billion ready to activate if necessary.
During meetings in Washington last week, EU Trade Commissioner Maroš Šefčovič received “the first draft of the (U.S.) proposals for the eventual agreement in principle,” though one diplomat described it as offering “nothing very concrete.” Treasury Secretary Scott Bessent had indicated Trump would be “sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level.”
Internal EU divisions have complicated negotiations, with Germany and Italy favoring quick acceptance of deals while France and Ireland urge a harder line. The situation remains volatile, as Trump demonstrated by abruptly cutting off similar negotiations with Canada last week over a digital services tax dispute.
What People Are Saying
President Donald Trump posted separate letters on Truth Social on Friday to Mexican President Claudia Sheinbaum Pardo as well as von der Leyen informing them of the tariff rates: “We have had years to discuss our Trading Relationship with The European Union, and have concluded that we must move away from these long-term, large, and persistent Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies and Trade Barriers.”
European Commission President Ursula von der Leyen’s X message on Saturday: “A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic. We will continue working towards an agreement by August 1.”
She added: “At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.”
German Chancellor Friedrich Merz told German broadcaster ARD on Sunday: “We want to use this time now, the two and half weeks until August 1 to find a solution. I am really committed to this.”
European Commission spokesperson Olof Gill told reporters last week: “Nothing you are seeing in terms of our approach to trade is haphazard. This has been war-gamed long before the election took place. And I think you can see that that’s really playing out in real time.”
What Happens Next
The immediate focus centers on the August 1 deadline, with European leaders racing to secure either an extension or a framework agreement. When asked about potential counter-tariffs as proposed by France, Merz indicated support but emphasized timing: “Yes, but not before August 1.”
The EU has prepared for diplomatic success and failure, having already positioned retaliatory measures while continuing to pursue negotiations. The outcome of Šefčovič’s Washington visit is expected to be discussed by EU ambassadors and the EU Council’s Trade Policy Committee this week.
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