Mounting pressure from European industries is forcing Brussels policymakers to confront the immediate economic costs of trade confrontation with the United States. Manufacturing sectors across the continent report severe strain from existing tariffs while facing the prospect of even higher barriers that could trigger widespread job losses.
The German Federation of Industries has emerged as the most vocal advocate for compromise, with President Peter Leibinger urging Chancellor Merz to communicate manufacturers’ suffering directly to European decision-makers. This lobbying campaign reflects deepening concern about industrial competitiveness as production remains below pre-pandemic levels.
European automotive manufacturers face particularly acute pressure, with existing 27.5% total tariffs already described as unsustainable by EU trade officials. The prospect of additional increases threatens to price European vehicles completely out of American markets, potentially triggering plant closures and massive employment disruption.
Beyond immediate economic costs, industry leaders warn that prolonged trade uncertainty prevents long-term investment planning and technological development. This strategic concern adds urgency to calls for negotiated settlement, as continued instability could permanently damage European industrial capacity regardless of ultimate tariff levels.