By Thomas Kolbe
German Finance Minister Lars Klingbeil wrapped up his visit to Washington last week. His meeting with U.S. Treasury Secretary Scott Bessent centered on the EU–US trade deal. A dose of European moralism, of course, wasn’t missing.
It was a meeting of political opposites. On one side: Scott Bessent, Wall Street veteran and committed to cutting America’s debt through radical fiscal consolidation, deregulation, tax cuts, and shrinking the role of the state. On the other: Lars Klingbeil, steward of the largest debt program in German history, embracing state intervention as economic salvation.
More than just a polite first encounter, this was a friendly but stark ideological clash.
No Trade Leverage
As expected, the follow-up to the EU–US trade deal was on the agenda. Klingbeil admitted that the deal had exposed Europe’s weaknesses. He called for a “stronger Europe,” suggesting unity was needed to face Washington “with confidence”—though always “in dialogue, not opposition.” His rhetoric wavered between confrontation and appeasement, declaring that Europe’s hand remained extended (how generous).
It was the usual watered-down European message: acknowledge U.S. dominance, then pretend there’s still parity.
On Russia, both sides agreed: Europe will move forward with its 18th sanctions package, while Trump threatened a 100% tariff if no ceasefire in Ukraine is reached soon.
China wasn’t officially on the table, but consensus is growing between Brussels and Washington: both want to curb the flood of Chinese exports. The U.S. has already launched aggressive tariffs. Europe’s position? Still unclear. Klingbeil likely knows Europe has little leverage in Beijing—just as it had none in Washington.
Brussels is now scrambling to implement an import surge monitoring system. But the EU’s last attempt to confront Beijing diplomatically failed—just like its trade talks with the U.S. Ursula von der Leyen’s delegation left China empty-handed.
Steel, Tariffs, and an American Wall
Klingbeil lobbied for German steel—pushing for export quota relief to cushion new tariffs. But the structure’s already in place: the U.S. 15% tariff wall stands, and only minor tweaks will be up for discussion in coming weeks.
Europe has quietly accepted Washington’s terms. Resistance from Brussels? Minimal.
Watch India closely: it complied with U.S. tariffs but defied Trump’s demand to stop buying Russian oil. Countries like India and Brazil are recalibrating—turning toward BRICS and away from the U.S.-centric system. Trump’s tariff regime is accelerating the tectonic realignment of global trade.
Free Trade? Keep Dreaming
At the press conference, Klingbeil emphasized free trade and his intent to work with Japan, Canada, and the UK in upcoming rounds. But after the EU’s protectionist record—and the Mercosur delay tactics—this promise sounds like fiction.
Global trade had already moved past free-market ideals before Trump’s tariffs. The EU exemplifies neo-mercantilism. Bilateral deals now define global trade, replacing post-WWII multilateralism.
Klingbeil’s visit? A polite handshake, little more. Europe’s trade position is stuck. Brussels shows no intention of dismantling the real barriers: climate regulation and harmonization rules that choke access to its internal market.
Moralism on Arrival
Klingbeil wouldn’t be a proper German minister without a final dose of European moralism. He criticized Trump’s firing of Erika McEntarfer, head of the Bureau of Labor Statistics, suggesting Europe values the independence of institutions.
Cue the laughter.
Lecturing America—right as it disentangles media from state control, dismantles the climate agenda, and restores institutional independence—is farcical. Especially coming from an EU representative whose bloc is busy rolling out the Digital Services Act, chat control, a central bank digital currency, and creeping judicial politicization.
If Europe’s last rhetorical bullet is hollow moralism, it’s already lost the battle.
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