Germany’s Merz Warns EU May Retaliate Against US Tech Giants Amid Trump Tariff Threats

German Chancellor Friedrich Merz has signaled the EU’s readiness to retaliate against major US technology firms if President Donald TRUMP follows through on threats to impose steep tariffs on European imports. The warning underscores escalating transatlantic trade tensions as both sides prepare for potential economic conflict.

"We currently provide strong protections for US tech companies, including on taxation," Merz stated during the WDR Europaforum in Berlin. "That can change, but our preference is resolution over escalation." The remarks come after Trump’s postponed plan to levy 50% tariffs on EU goods, now delayed until July 9 following discussions with European Commission President Ursula von der Leyen.

Market analysts note that such trade disputes historically create volatility in digital asset markets, though no direct cryptocurrency implications were cited in Merz’s address. The standoff reflects broader geopolitical strains that could influence institutional crypto adoption as corporations seek decentralized alternatives to traditional financial systems.