Germany warns that Trump may fold under pressure as the EU prepares a united response to the new 20% U.S. tariffs. German leaders urge strategic action to avoid a trade war. Trump will ‘buckle under pressure’ if Europe unites against tariffs, says German economy minister
German Minister: Trump Will Surrender if EU Unites on Tariffs
“That is what I believe, that Donald Trump will buckle under pressure, that he amends his statements under pressure,” German economy minister Robert Habeck stated on Thursday.
In other news, former German Chancellor Olaf Scholz told the outgoing leader of Germany that he thought the latest tariff actions from Trump were fundamentally wrong.
On Wednesday, Trump slapped 20% tariffs on the European Union, including the bloc’s leading economy, Germany. U.S. President Donald Trump will “buckle under pressure” and change his tariff policy if Europe unites, acting German economy minister Robert Habeck said on Thursday.
“That is what I see, that Donald Trump will buckle under pressure, that he corrects his announcements under pressure, but the logical consequence is that he then also must feel the pressure,” he stated in a press conference.
And this pressure now must be unfolded, from Germany, from Europe, in the coalition with other nations, and then we will see who is the stronger one in this arm wrestle,” Habeck said.
Allowing Trump to persist or trying to appease him would not be a successful strategy under any circumstances, he added, noting that the response should be a “day of determination.”
Strategically, the goal should be to prevent tariffs and a trade war, but the question was how to arrive there, the economy minister said. Habeck also called on Europe to invest strategically to become more independent, for instance by developing its cloud infrastructure and its artificial intelligence and space capabilities.
“We simply can’t depend on everyone being friendly to us anymore,” he said, referencing having learned a lesson the hard way when Germany’s economy suffered greatly because it was so dependent on Russian energy after the Russia-Ukraine war began.
Germany had paid a “high price for this blindness, for this economic and energy policy blindness,” and that need not be repeated in “all other areas,” Habeck stated, indicating that this was the job of the new government.
‘Poorly thought-through decisions’
Outgoing German Chancellor Olaf Scholz said he thought the most recent tariff moves by Trump were “fundamentally wrong.
The steps are an assault on the world trade order, and the “ill-conceived choices” will cause pain for the world economy, Scholz stated. The U.S. administration is on a course that will end in only losers, he said. Wednesday, Trump hit the European Union with 20% tariffs, including on the bloc’s leading economy Germany, as he signed a broad and aggressive “reciprocal tariff” policy.
Germany is generally seen as being among the nations most likely to be affected by Trump’s tariffs, as it has such a strong economic dependence on trade.
The U.S. is Germany’s largest trading partner besides China, with trade volume — the total of exports and imports — standing at 252.8 billion euros ($278.7 billion) in 2024, German statistics office Destatis said. In the previous year, the U.S. was also the home for the largest share of German exports.
The German index DAX
Was most recently down about 1.6% by 10:42 a.m. London time, and German government bonds were lower sharply. The 10-year Bund yield was most recently down more than 7 basis points at 2.648%, while the 2-year Bund yield plummeted more than 11 basis points to 1.93%.
EU in preparation for countermeasures
Also reacting to the White House events, the President of the European Commission, Ursula von der Leyen, stated that the European Union was setting up countermeasures to respond to the newest tariffs by U.S. President Donald Trump, in case of failed negotiations.
“We are ready to respond,” she declared. “We are now preparing for additional countermeasures to defend our interests and our companies if the negotiations break down.”
But von der Leyen also urged a move “from confrontation to negotiation,” as she implied it was not too late for negotiations between the EU and the U.S.
Germany’s Scholz on Thursday repeated calls for cooperation and implied Europe would stand up for its interests. “Europe will respond united, firm, and proportionally to the U.S. decision,” he said.
