In light of potential Trump tariffs, EU trade nearly unattainable
The ongoing trade dispute between the US and the EU has caused turmoil within the EU, with divisions on how to confront the issue. EU trade chief Maros Sefcovic has been representing the EU's 27 member states during more than four weeks of talks with the US.
Sefcovic stated that a 30% tariff on EU-US trade would make it nearly impossible to continue trade, which is currently worth €4.4 billion ($5.15 billion) per day. He indicated that the EU is prepared for all outcomes in the ongoing negotiations with the US.
If negotiations fail, the EU is prepared to implement proportionate countermeasures. This approach is underscored by statements from EU officials, including European Commission President Ursula von der Leyen, who has expressed readiness to engage in dialogue but also emphasized protection of EU economic interests through proportionate responses if necessary.
The EU's response plan includes a temporary suspension of existing EU retaliatory tariffs while actively seeking dialogue for a mutually acceptable resolution. The EU has adopted a regulation suspending additional customs duties that were previously imposed, but this is until August 6, 2025, after which it will reassess the situation and may shorten the suspension or take further action if the US tariffs remain.
Italy's Foreign Minister Antonio Tajani stated that the EU has prepared a list of tariffs worth €21 billion ($24.5 billion) on US goods if the two sides fail to reach a deal. Germany's Chancellor Friedrich Merz stated that he will work intensively to reach a deal before the August 1 deadline, but Merz, like French President Emmanuel Macron, is in favour of massive countertariffs if Trump's threat becomes a reality.
France is among European countries calling for a hardball approach, while others urge caution with a mind to Europe's continued reliance on the US for defense. Denmark's foreign minister Lars Lokke Rasmussen called for a firmer approach in the negotiations. France's Trade Minister Laurent Saint-Martin suggested there should be "no taboos" in any retaliatory plans.
Another set of reprisal measures will be presented to trade ministers on Monday if the 30% tariffs go ahead. European Commission President Ursula von der Leyen delayed a package of retaliatory measures due on Monday, as a sign of goodwill.
Sefcovic suggested that well-considered, proportionate countermeasures would still be on the table if no deal could be reached. He stated that the current uncertainty caused by unjustified tariffs cannot persist indefinitely.
The article was edited by Saim Dušan Inayatullah.
[1] European Commission. (n.d.). EU's response to US tariffs on steel and aluminium. European Commission. https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12527-Commission-Proposal-for-a-Regulation-on-imposing-additional-duties-on-certain-goods-originating-in-the-United-States-in-the-context-of-the-WTO-dispute-DS548-United-States-tariffs-on-steel-and-aluminium
[2] European Commission. (n.d.). EU's response to US tariffs on certain goods. European Commission. https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12530-Commission-Proposal-for-a-Regulation-on-imposing-additional-duties-on-certain-goods-originating-in-the-United-States-in-the-context-of-the-WTO-dispute-DS548-United-States-tariffs-on-steel-and-aluminium_en
- The ongoing news about the economic conflict between the US and the EU has become a significant topic in politics, with the EU preparing for various outcomes in the trade negotiations.
- The EU's policy-and-legislation response plan includes a suspension of existing tariffs and an implementation of proportional countermeasures, worth €21 billion ($24.5 billion), if the US tariffs persist.
- In Europe, discussions about war-and-conflicts and general-news often include the ongoing trade dispute between the US and the EU, with some countries advocating for a hardball approach while others urge caution regarding the defense relationship with the US.
