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Germany is preparing to respond to increased US trade pressure


July, 21 2025
watermark Economic news

The United States has increased its demands in negotiations on a trade agreement with the EU, which provoked a harsh reaction from Germany. The German authorities, previously determined to compromise, are increasingly skeptical about reaching a deal with Washington. 


President Donald Trump insists on imposing minimum duties from 15% to 20%, as well as maintaining 25% duties on cars, even if an agreement is concluded. These conditions have caused discontent in Berlin, where Trump's threats of 30% tariffs are now seen as a reason for retaliatory measures.


The EU has demanded that the European Commission develop new measures against American companies. Among the proposals are fees for digital services from the United States and restrictions on access by American corporations to EU government procurement. Brussels is ready to implement them if a deal is not reached by August 1. Germany, Europe's largest economy, has taken a tougher stance, similar to France's approach.


Despite the preparations for the trade standoff, the EU remains hopeful of a successful conclusion to the negotiations and is not planning any action until August. However, Brussels is confident that any concession will be perceived by the United States as weakness, so Europe is preparing for a possible escalation.


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