Marcel Fratzscher, president of the German Institute for Economic Research (DIW), has urged the European Union to take a strong counter-response to the new tariffs announced by US President Donald Trump.
Speaking to the “Handelsblatt” (Monday edition), Fratzscher argued that because Trump appears politically vulnerable right now, the time is ripe for the EU to regain leverage. He advised implementing retaliatory tariffs, specifically recommending that the EU target US tech companies as a means of offsetting disadvantages and improving its overall negotiation position.
The impetus for this warning is Trump’s recent announcement that the tariffs on cars and trucks originating from the European Union would be increased to 25 percent. While he did not provide specific details on the new rates, these tariffs are slated to take effect starting next week.
