The European Union's trade commissioner, Maros Sefcovic, expressed alarm on Monday regarding President Trump's recent threat to impose a 30% tariff on EU goods, stating it could jeopardize the ongoing trade negotiations, as the two sides were believed to be on the verge of an agreement.
Trump's Tariff Threat Could Derail Trans-Atlantic Trade, EU Official Warns
Trump's Tariff Threat Could Derail Trans-Atlantic Trade, EU Official Warns
The EU's trade commissioner expresses concerns over President Trump's threat to impose hefty tariffs, jeopardizing near-final trade negotiations.
In a surprising turn of events, EU trade commissioner Maros Sefcovic reported on Monday that President Trump's latest threat to apply a 30% tariff on all goods from the European Union (EU) could drastically disrupt trans-Atlantic trade relations. Sefcovic indicated that recent discussions had resulted in a promising prospect for a trade deal, one that appeared to be close to fruition until the sudden announcement was made public on Saturday.
Sefcovic conveyed his frustration as he approached a meeting with EU trade ministers in Brussels, emphasizing that such a substantial levy would effectively halt trade between the two markets, which are highly interdependent. He mentioned that he was set to engage with American officials later in the day to explore potential alternatives to a tariff-induced crisis.
Prior to Trump's escalation, European officials felt confident that they were moving toward a compromise that would see a more moderate baseline tariff of 10%, accompanied by various exemptions. Despite regular communication and the expectation that an agreement was near, Sefcovic received a last-minute warning about Trump's intention, which altered the previously constructive negotiations.
In light of the tariff threat, other European ministers expressed their concern. Danish Foreign Minister Lars Lokke Rasmussen highlighted the adverse effects a trade war would impose not just on Europe, but on the U.S. as well. He also suggested that the EU should be ready to counter by imposing tariffs on American imports, should the situation require it.
Brussels is reportedly preparing to introduce tariffs on up to 21 billion euros' worth of American products as a potential retaliatory measure, with a further list under review that could cover over 72 billion euros. Although the timeline for implementing these tariffs is set for August 1, many EU officials insisted on the necessity of being prepared to act decisively if Trump follows through with his threat. They view the decision to delay as a strategic move to prevent escalation, not an indication of weakness in their approach.
As negotiations continue and tensions simmer, the outcome of this trade spat remains to be seen, with both sides keenly aware of the far-reaching implications for the global economy.
Sefcovic conveyed his frustration as he approached a meeting with EU trade ministers in Brussels, emphasizing that such a substantial levy would effectively halt trade between the two markets, which are highly interdependent. He mentioned that he was set to engage with American officials later in the day to explore potential alternatives to a tariff-induced crisis.
Prior to Trump's escalation, European officials felt confident that they were moving toward a compromise that would see a more moderate baseline tariff of 10%, accompanied by various exemptions. Despite regular communication and the expectation that an agreement was near, Sefcovic received a last-minute warning about Trump's intention, which altered the previously constructive negotiations.
In light of the tariff threat, other European ministers expressed their concern. Danish Foreign Minister Lars Lokke Rasmussen highlighted the adverse effects a trade war would impose not just on Europe, but on the U.S. as well. He also suggested that the EU should be ready to counter by imposing tariffs on American imports, should the situation require it.
Brussels is reportedly preparing to introduce tariffs on up to 21 billion euros' worth of American products as a potential retaliatory measure, with a further list under review that could cover over 72 billion euros. Although the timeline for implementing these tariffs is set for August 1, many EU officials insisted on the necessity of being prepared to act decisively if Trump follows through with his threat. They view the decision to delay as a strategic move to prevent escalation, not an indication of weakness in their approach.
As negotiations continue and tensions simmer, the outcome of this trade spat remains to be seen, with both sides keenly aware of the far-reaching implications for the global economy.
