Europe is "accelerating negotiations" with the U.S. while threatening American tech companies to become "targets of retaliation."

With only six weeks left before the new tariffs take effect, the European Union's attitude towards the United States seems to present a subtle "talk while fighting" situation. While the EU accelerates trade negotiations with the U.S., German Chancellor Merz warns that if trade conflicts with the Trump administration escalate, the EU may take countermeasures against American tech companies.According to CCTV News, on the 26th local time, Chancellor Merz stated that Germany and other EU countries do not wish for the tariff dispute to escalate. From Germany's perspective, increased tariffs would harm its interests, and if the U.S.-EU negotiations fail to reach an agreement, Germany will have no choice but to retaliate against U.S. tariff policies. The current U.S.-EU negotiations are striving to avoid an escalation of the situation, and Germany also hopes to prevent a tariff war from occurring. Merz also mentioned that Germany needs to be prepared for the failure of negotiations between the EU and the U.S. and any other eventualities.In addition, Merz stated that American tech companies enjoy a favorable tax environment in the EU, but this situation may not last indefinitely. The EU does not wish to become embroiled in an escalating tariff war with the U.S., and both sides need to work together to resolve trade conflicts.American tech companies may become targets of retaliation, Merz: We should not respond hastily and in panicAccording to media reports, Merz stated at the European Forum held in Berlin on Monday:Currently, we strongly protect American tech companies—including in terms of taxes... However, this can change. But I do not want to escalate the conflict. I hope to solve the problem together.According to a statement from the European Commission on May 26, both the U.S. and EU have reached a consensus to accelerate trade negotiations, with the Trump administration agreeing to extend the deadline for imposing a 50% tariff on the EU from the originally scheduled June 1 to July 9.This decision was made after European Commission President Ursula von der Leyen spoke with Trump on Sunday night.Reports indicate that Merz fully supports von der Leyen's approach and reiterates that Germany will not reach a separate agreement and will leave trade matters to the EU. However, he also emphasized that the EU will take action if necessary.We should not respond hastily and in panic. We believe that tariffs will harm our own interests. But if there is no other choice, we can only use this tool.EU prepares for retaliation while negotiating: A list of products worth hundreds of billions of euros is readyAlthough the EU states that its 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 U.S. goods worth €21 billion as a response to Trump's metal tariffs. This measure has currently been suspended until July, but could be expedited if negotiations break down.Additionally, the EU is preparing to impose extra tariffs on U.S. products worth €95 billion. These measures target industrial products such as Boeing aircraft, American-made cars, and bourbon whiskey.According to Bloomberg economists, Trump's threat of a 50% tariff would affect U.S.-EU trade worth $321 billion. This would lead to a nearly 0.6% decline in U.S. GDP and increase prices by more than 0.3%.After the first call between U.S. and EU leaders, Trump extends the tariff deadline to July 9It is worth noting that just before German Chancellor Merz issued a warning, the US and Europe reached a consensus.According to CCTV News, on the 25th local time, US President Trump stated that the European Union requested to extend the deadline for tariff negotiations to July 9, and he has agreed to this request. Trump described the discussions with the EU on tariff issues as "very pleasant."On the 23rd, Trump posted on social media that he suggested imposing a 50% tariff on goods from the EU starting June 1. He stated that the main purpose of the EU's establishment was to "take advantage of the US in trade," and that negotiations between the US and the EU were "making no progress."Media reports indicate that Trump's decision to postpone the deadline stemmed from a proactive phone request from European Commission President Ursula von der Leyen. This conversation marked the first public call between the two leaders since Trump took office, with the EU promising to "swiftly and decisively" advance the negotiations