EU is neither naive nor defenseless: German chancellor

German Chancellor Friedrich Merz warned Wednesday that the EU will not hesitate to retaliate if the US threatens new tariffs again.

"We are neither naive nor defenseless. We have instruments at hand," Merz told CEOs and senior industry representatives at the European Industry Summit in Antwerp, Belgium. "To counter unfair practices, we will use them, if necessary."

Merz cited last month's standoff between the US and European countries over Denmark's Arctic territory of Greenland, noting that US President Donald Trump backed down from imposing additional tariffs after EU leaders presented a united front.

"You might remember what happened in this famous week of Davos," he said, referring to the emergency summit EU leaders convened to prepare countermeasures. "As long as the American government was on the way to implement new tariffs on the European partners, we were ready to act."

"And if the Americans had not withdrawn until then, their threat of new tariffs, we were ready to implement these countermeasures," Merz added. "Again, we are not naive and we are not defenseless." He emphasized that the EU is strong when acting together.