Macron has advised European companies to halt investments in the US to avoid sending the wrong signal by pouring billions into the American economy while facing trade disputes. Trump's reciprocal tariffs aim to address trade barriers that American exports encounter overseas. The EU possesses retaliatory measures such as tariffs on American services, technology companies, and a potential digital services tax on US corporations by the end of April.

The US recently imposed a 20% tariff on EU imports, escalating tensions. France and Germany advocate for a robust response to Trump's tariffs to enhance the EU's negotiating stance. The EU is preparing countermeasures to protect its interests, with a meeting of trade ministers scheduled to discuss the situation. The EU is exploring options like the anti-coercion instrument and negotiations to resolve the trade dispute in the coming weeks.

Trump's tariffs are the most severe in a century, affecting exporters worldwide. The EU aims to collaborate with Mexico and Canada, among other allies, in response. The EU acknowledges the importance of American services in its market, which includes significant investments in each other's markets.

The EU is gearing up to implement countermeasures against the US tariffs and is considering concessions and negotiations to resolve the trade conflict. The EU and the US have intertwined interests in various sectors, indicating a need for a balanced resolution to the dispute.