Germany's Merz warns Trump: EU not naive, ready to retaliate on tariffs

German Chancellor Friedrich Merz issued a firm warning to the United States on Wednesday, stating that the European Union is neither gullible nor powerless in the face of potential trade aggression. Addressing industry leaders at the European Industry Summit in Antwerp, Merz made clear that Brussels has the tools and the will to respond decisively to any new tariff threats from the Trump administration.

A lesson from the Greenland standoff

Merz pointed to last month's confrontation over Greenland, the Danish autonomous territory that drew unwanted attention from President Donald Trump. When Washington signaled possible tariff action against European allies, EU leaders convened emergency talks in Davos and prepared swift retaliation. "As long as the American government was on the way to implement new tariffs on the European partners, we were ready to act," Merz said. The threat was withdrawn before taking effect. "Again, we are not naive and we are not defenseless," he emphasized.

Unity as Europe's strongest weapon

The German chancellor underscored that Europe's greatest strength lies in its collective action. "We are strong when we act together," Merz told the summit. His remarks reflect a growing consensus among European capitals that the transatlantic relationship must be based on mutual respect, not unilateral coercion. The message is particularly resonant for EU candidates and partners like Türkiye, which closely monitor the bloc's capacity for strategic autonomy.

Preparing for future trade battles

Merz's explicit reference to "instruments" and readiness to implement countermeasures signals a shift in European trade diplomacy. Rather than relying solely on dialogue, the EU is positioning itself for potential confrontation. The timing of the statement, coming amid ongoing uncertainty over US trade policy, suggests European leaders are preparing for a prolonged period of transactional and unpredictable engagement with Washington.