Europe must consider retaliating against Trump's tariff ‘blackmail,' business leaders tell CNBC

• Trump has threatened 10% tariffs on six EU nations plus the UK and Norway starting Feb. 1, potentially rising to 25% in June if countries resist his Greenland plans
• Analysis shows 10% U.S. tariffs could cost UK businesses £6 billion initially, rising to £15 billion ($20 billion) if tariffs increase to 25% in June
• German business associations representing millions of companies warn that over half of exported machinery could be affected, with mechanical engineering already facing 50% levies on steel and aluminum

Summary

European business leaders are urging the EU to consider retaliatory measures against President Trump's threatened tariffs, which they characterize as "blackmail." Trump announced plans to impose 10% tariffs on six EU nations, the UK, and Norway starting February 1, with potential increases to 25% in June if countries resist his Greenland acquisition plans.

Key Organizations and Statements:

• The German Chamber of Commerce and Industry (DIHK), representing 4 million businesses, called for reviewing all EU trade defense instruments, including the Anti-Coercion Instrument (ACI)
• VDMA president Bertram Kawlath, representing 3,500 German engineering companies, stated "Europe must not allow itself to be blackmailed"
• The Confederation of Norwegian Enterprise advocated for preparedness to "act decisively" while seeking de-escalation

Economic Impact:

• British Chambers of Commerce analysis estimates 10% tariffs could cost UK businesses £6 billion ($7.8 billion), rising to £15 billion ($20 billion) at 25%
• UK-US bilateral trade totals £300 billion, with £500 billion in UK investment in the US economy and £700 billion in US investment in the UK
• German mechanical engineering sector particularly vulnerable, with over half of exported machinery potentially affected
• Existing 50% steel and aluminum tariffs already burden European manufacturers

Market Implications:

The EU has frozen its US trade deal negotiations in response. Deutsche Bank analysts noted Europe's economic unity provides leverage for counter-measures. However, German business leaders warn of "significant" cuts to transatlantic trade if tariffs proceed, creating substantial uncertainty for European exporters and manufacturers.