Tariffs are a consequence of Europe's passivity, says German economist

Marcel Fratzscher, president of the German economic institute DIW, warned that the EU's passivity exposes the continent to constant blackmail by President Donald Trump.

In response to his threats to impose tariffs—allegedly because of Europe's stance on Greenland—Fratzscher described Europe's approach as weak and short-sighted.

According to him, the EU is not using its potential and is backing down where it should be promoting multilateralism and its own interests. "This is a mistake that is now coming back to haunt us," said the economist, adding that Trump will continue to apply pressure unless Europe starts to act more decisively.

The statement was made on Saturday in response to growing tensions between Washington and European leaders, which are deepening particularly on issues of international trade and strategic raw materials.

(reuters)