Germany’s powerful industry leaders are urging the European Union to push back against former U.S. President Donald Trump’s renewed tariff threats, insisting that Denmark and Greenland are not alone as tensions rise between Washington and Europe.
German Industry Pushes Back
Germany’s manufacturing sector has drawn a line in the sand. Top executives are warning that Europe must resist political pressure from Trump, whose threats of new tariffs have rattled European markets and reignited debates about sovereignty. The head of the powerful German Mechanical Engineering Industry Association (VDMA) said that Trump’s latest threats regarding Greenland have changed everything for European business.
The VDMA represents more than 3,500 companies in Germany, Austria, Italy, France, and Poland, including industrial giants like ABB, Siemens, Bosch, and Thyssenkrupp. Together, they employ millions across Europe. Now, these firms are signaling that they are ready to stand firm, even if that means selling fewer goods to the United States.
This marks a shift from only a few months ago when industry leaders hoped for stability under the trade deal between the European Union and the U.S. At the time, both sides agreed that most European exports would face a 15 percent tariff, while the EU would cut tariffs on American industrial and agricultural goods.
Trade Relations Take a Political Turn
The business community initially accepted the tariff compromise as a pragmatic step toward predictability. But developments around Greenland, where Trump’s administration has revived interest in asserting influence, have upended those expectations. In response, the German industrial federation insists that trade tensions can no longer be treated as a purely economic issue.
According to industry leaders, the tariff threats have become “pure sanctions.” For them, this is not about the economy anymore but about political pressure and independence. For that reason, the VDMA and several major companies are calling on the EU to suspend the pending trade agreement, which still awaits final approval by the European Parliament.
They also urge the European Commission to consider using the so-called Anti-Coercion Instrument, nicknamed the “trade bazooka.” This tool allows the EU to retaliate against foreign powers that apply economic pressure on member states. The German business sector argues that the time may have come to use it.
Economic Stakes Remain High
These statements come at a fragile time. Germany’s economy is barely regaining footing after several years of slowdown. Its automotive sector continues to face stiff competition from Chinese manufacturers. Meanwhile, the lingering impact of American tariffs has hurt several industrial exporters.
The United States remains Germany’s largest trading partner. Between January and October last year, Germany’s machinery and equipment sector exported goods worth nearly 157 billion Danish kroner to the U.S.—a sizable portion of all industrial exports. For comparison, Denmark’s total exports to the U.S. in 2024 amounted to around 244 billion kroner. Among VDMA members alone, roughly 100,000 jobs depend directly on trade with the American market.
Under these conditions, any escalation in tariffs would hit many German and European companies hard. Yet, German industry leaders now appear more concerned with political principles than immediate profits. In their view, Europe’s independence and self-determination cannot be compromised for trade advantages.
A Question of European Unity
From the perspective of Germany’s industrial associations, the dispute goes well beyond tariffs. It touches on European unity, democratic sovereignty, and the shared responsibility to defend member nations like Denmark and territories such as Greenland from external pressure. As one industry leader explained, if Europe yields to coercion, it risks becoming dependent on global power dynamics and losing its voice in setting economic and political standards.
For now, the call from Germany’s business elite is clear: Europe must act as one and show that no single country or leader can use trade policy as a weapon to undermine European sovereignty.
Sources and References
The Danish Dream: How Trump’s Tariffs Shook Danish Business Leaders
The Danish Dream: Banking in Denmark for Foreigners (Updated 2025)
DR: Tysk industriboss til DR – Danmark og Grønland står ikke alene
