EU Finance Chiefs Urge Caution Amid Trump Tariff Threats

As President-elect Donald Trump prepares for his return to the White House, European Union finance chiefs are urging caution against retaliatory tariffs in response to his threats, highlighting the risks of escalating protectionism. European automakers may be forced to shift production from Mexico to the U.S. due to Trump's proposed tariffs, which could further strain their operations amid declining sales and emission fines. EU officials are considering a range of responses to Trump's tariff plans, which could include commitments to purchase American liquefied natural gas and increased military spending. Germany is expected to be a primary target of any new tariffs, given its trade surplus with the U.S., prompting calls for a unified European response. The EU aims to maintain its free trade principles while preparing to counteract potential economic damage from U.S. policies. Amid these tensions, the bloc is also looking to strengthen ties with the U.S. on issues like support for Ukraine and confronting China.