Trump Will ‘Buckle Under Pressure’ if Europe Bands Together on Tariffs, Says German Economy Minister

Introduction

U.S. President Donald Trump’s tariff policies have sparked widespread debate and concern, particularly among European leaders. Acting German Economy Minister Robert Habeck has expressed confidence that Trump would alter his stance if Europe presents a united front. During a press conference, Habeck emphasized the importance of collective action, strategic investments, and a firm stance against economic pressure.

Europe’s Strategy Against Tariffs

Habeck highlighted that a coordinated response from Germany, Europe, and allied countries is essential to counter Trump’s trade policies effectively. He asserted that Trump tends to adjust his decisions when faced with strong opposition and that Europe must exert the necessary pressure to protect its economic interests.

“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 needs to feel the pressure,” Habeck stated.

The minister stressed that allowing Trump to proceed with his tariff policies unchallenged or attempting to appease him would be an unsuccessful strategy. Instead, a decisive and strategic response is required.

The Need for a Strong and Determined Response

Habeck called for a “day of determination,” urging European nations to stand firm and demonstrate resilience. He underscored that the primary objective should be to prevent tariffs and avoid a full-scale trade war. However, the key challenge remains finding the right approach to achieve this goal.

Rather than reacting passively, he advocated for a proactive stance, ensuring that Trump feels the pressure necessary to reconsider his policies.

Strategic Investments for Economic Independence

Beyond addressing tariffs, Habeck emphasized the need for Europe to invest strategically in areas that can enhance its economic independence. He pointed out that Europe cannot rely on external partners always acting in its favor and should take proactive steps to safeguard its interests.

Enhancing Technological Capabilities

Habeck suggested that Europe should focus on improving its cloud infrastructure, artificial intelligence capabilities, and space technology. These investments would reduce dependency on external technological providers and strengthen Europe’s economic and strategic positioning.

Learning from Past Mistakes

Germany’s economy suffered significantly due to its reliance on Russian energy, particularly after the Russia-Ukraine war began. Habeck acknowledged that this dependence had severe consequences and that similar mistakes should be avoided in other economic areas.

“We just can’t rely on everyone only being friendly to us anymore,” Habeck remarked, referring to the lessons learned from past dependencies.

The minister stressed that Europe must ensure it does not repeat its previous economic and energy policy miscalculations. This requires proactive investments, diversification of economic dependencies, and strategic alliances with reliable partners.

Vikrant

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