Europe "accelerates" negotiations with the United States, but threatens American technology companies to become "objects of revenge"

Source: Wall Street Journal  

With just six weeks left before new tariffs are set to take effect, the EU's stance toward the U.S. appears to reflect a delicate "negotiate while preparing to retaliate" approach. While accelerating trade talks with the U.S., German Chancellor Merts issued a warning: If trade tensions escalate with the Trump administration, the EU may retaliate against American tech companies.  

According to CCTV News, on the 26th local time, German Chancellor Merts stated that Germany and other EU countries do not want the tariff dispute to escalate. From Germany's perspective, imposing additional tariffs would harm its interests. If EU-U.S. negotiations fail to reach an agreement, Germany will have no choice but to retaliate against U.S. tariff policies. Current EU-U.S. negotiations are striving to avoid escalation, and Germany also hopes to prevent a tariff war. Merts added that Germany must prepare for the failure of EU-U.S. talks and any other contingencies.  

Merts further noted that U.S. tech companies currently enjoy favorable tax conditions in the EU, but this may not last. The EU does not want to escalate a tariff war with the U.S., and both sides must work together to resolve trade conflicts.  

**U.S. Tech Companies as Potential Targets: Merts Urges Calm Response**  

Media reports indicate that Merts, speaking at the European Forum in Berlin on Monday, said:  

"At present, we strongly protect U.S. tech companies—including in terms of taxation... But this can change. However, I do not want to escalate the conflict. I hope to solve the problem jointly."  

According to a May 26 statement from the European Commission, the U.S. and EU have agreed to accelerate trade negotiations, with the Trump administration postponing the 50% tariff deadline from June 1 to July 9.  

This decision was made after a phone call between European Commission President Ursula von der Leyen and Trump on Sunday evening.  

Reports state that Merts fully supports von der Leyen's approach and reiterated Germany's position of not negotiating separately but leaving trade matters to the EU. However, he also emphasized that the EU would act if necessary.  

"We should not respond hastily or panicked. We believe tariffs will harm our own interests. But if there is no other choice, we will have to use this tool."  

**EU Prepares Retaliation: Lists Hundreds of Billions in Goods**  

Although the EU's primary goal is to seek a negotiated solution with the U.S., it is also actively preparing countermeasures.  

Reports indicate that the EU plans to impose tariffs on $21 billion worth of U.S. goods in response to Trump's metal tariffs. This measure has been suspended until July but could be implemented quickly if talks collapse.  

Additionally, the EU is preparing to impose additional tariffs on $95 billion worth of U.S. products, targeting industrial goods such as Boeing aircraft, U.S.-made cars, and bourbon whiskey.  

According to Bloomberg Economics calculations, Trump's 50% tariff threat would affect $321 billion in U.S.-EU trade, potentially reducing U.S. GDP by nearly 0.6% and raising prices by over 0.3%.  

**After First Trump-von der Leyen Call, Tariff Deadline Extended to July 9**  

Notably, Chancellor Merts' warning came shortly after the U.S. and EU reached a consensus.  

CCTV News reported that on the 25th local time, U.S. President Trump stated that the EU had requested an extension of tariff negotiations to July 9, which he agreed to. Trump described the conversation with the EU on tariffs as "very pleasant."  

On the 23rd, Trump posted on social media that he proposed imposing 50% tariffs on EU goods starting June 1. He claimed the EU was primarily established to "take advantage of the U.S. in trade" and that negotiations had made "no progress."  

Reports indicate that Trump's decision to delay the deadline stemmed from a proactive phone call request from von der Leyen. This marked the first publicly disclosed call between the two leaders since Trump took office, with the EU pledging to advance talks "swiftly and decisively."  

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