Germany Backs EU’s Massive 100 Billion Euro Plan to Counter U.S. Tariffs

Germany has voiced strong support for the European Union’s ambitious plan to prepare 100 billion euros ($117 billion) in countermeasures against the United States amid escalating tariff tensions. A German government official confirmed this backing, signaling the EU’s readiness to respond if negotiations with the U.S. fail to yield a tariff agreement.

The EU’s strategy includes activating the Anti-Coercion Instrument (ACI), a policy specifically designed to shield the bloc from unfair economic pressures. The ACI empowers the EU to implement targeted actions against countries that use economic threats to influence its political decisions.

Reason for the Countermeasures

The move arises from the U.S. imposition of steel and aluminum tariffs, which the EU has criticized as unjust and damaging to its economy. Various European sectors—such as automotive, machinery, and consumer goods—have been adversely affected, raising concerns over increased costs and potential job losses.

EU and Germany’s Unified Stance

Alongside Germany, multiple EU member states support a firm response to these tariffs. The EU continues negotiations with Washington in hopes of achieving a comprehensive trade deal to avoid the costly retaliatory measures.

Additional Context

• The German government highlighted a recent trade agreement with Japan as an example of the EU’s commitment to fair trade partnerships worldwide.
• In contrast, the absence of a similar deal with the U.S. has prompted the EU to prepare for decisive counteractions.

Details of Planned Countermeasures

Experts outline that the EU’s proposed countermeasures may include:

1. Tariffs on selected imports from the U.S.
2. Investment restrictions targeting U.S. entities
3. Potential legal challenges in international trade courts

These steps aim to protect European industries and workers while pressuring the U.S. to reconsider its tariff policies.

With ongoing diplomatic talks, the situation remains dynamic, reflecting the EU’s effort to balance its commitment to open trade with the need to defend its economic interests.

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