European Commissioner for Trade Maroš Šefčovič is adamant that trade between the EU and the US should be guided by mutual respect, not threats. The EU continues to strive to reach an agreement that works for both sides, he assured, adding that the EU will do everything to protect its interests. Šefčovič previously spoke with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer, the public media outlet ARD reported.
Trump's threat caught the EU unprepared
The US president recommended the introduction of a 50 percent tariff on EU goods from the beginning of June, justifying this with the lack of progress in the negotiations. “Our talks with you are going nowhere”, Trump wrote on his social network.
The threat caught the EU off guard, ARD further points out. In recent days, hopes for rapprochement between Brussels and Washington had grown after the two sides exchanged specific demands for the first time. It seemed that this opened up an opportunity for real negotiations, which, however, was snuffed out by Trump.
The chairman of the European Parliament's Trade Committee, Bernd Lange, is of the opinion that Trump wants to put the EU under pressure in this way. “We will not accept this. We will not allow ourselves to be blackmailed. We will negotiate clearly. And if the negotiations fail and tariffs are imposed, of course we will impose counter-tariffs. As a community, we are strong enough to do it," Lange said, quoted by ARD.
This ends the "truce"
Trump's threat to impose a 50 percent tariff from the beginning of June is also notable because the two sides had actually agreed to a "truce" in the customs dispute: in the name of negotiations, the higher tariffs from the US and the counter-tariffs from the EU were postponed by 90 days. This period was effectively cut in half - it was supposed to run until July.
In addition, the US continues to impose a uniform tariff of ten percent on imports, including from the EU. US additional tariffs on steel and aluminum imports, as well as cars and car parts from the EU, continue to apply.
EU wants a fair deal
At their meeting in Brussels a week ago, EU trade ministers specifically emphasized that they would only accept a fair deal. According to them, Washington's agreements with China and Britain cannot set an example for the EU. In parallel, Brussels is preparing countermeasures and presented a list of American goods on which countermeasures may be imposed. The list includes imports from the US worth 95 billion euros, ARD recalls.
Green MEP Anna Cavazzini told the German public-law media outlet that Trump's move significantly increases the likelihood of countermeasures from the EU. CDU trade expert Daniel Caspari warned: “The European Commission has experience in trade negotiations. We need to continue to negotiate calmly, to push our interests forward and as we saw in the US-China trade dispute, the United States is not invincible on this issue".
EU is in talks with other trading partners
In response to the trade dispute with the US, the EC has intensified its talks with other trading partners. In the meantime (according to its own data), 44 free trade agreements have been concluded with 76 countries. Talks are currently underway with India, Indonesia and the United Arab Emirates, ARD reports.
“We urgently need to conclude trade agreements with major partner countries such as India, Indonesia, Brazil, Argentina, etc., and implement them in order to open up alternative markets for our companies while expanding our supply chains,” says Caspari.
The chairman of the Commerce Committee will travel to Washington next week to talk about the tariff dispute with members of Congress. Trump's threat certainly did not make these talks easier - Trump could have avoided it, Bernd Lange believes.
Author: Jakob Meyer (ARD)