The European Commission is calling on the United States to approach trade talks with respect rather than intimidation, following President Donald Trump’s proposal for a 50% tariff on EU goods. EU Trade Chief Maroš Šefčovič emphasized that the European Union is committed to negotiating a deal beneficial for both parties. He engaged in discussions with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick to seek common ground.
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President Trump’s suggestion of imposing higher tariffs on EU imports starting June 1 has raised concerns. The European Commission, which manages trade policy for the 27-nation bloc, remains dedicated to fostering constructive dialogue. As Šefčovič stated, “We are ready to work in good faith.”
The impact of Trump’s announcement was immediate, with major stock indices plummeting, the dollar declining against other currencies, and the euro losing its earlier gains. Renowned economist Holger Schmieding from Berenberg warned, “With Trump, you never know, but this would be a major escalation.” He added that such tariffs would significantly harm both the U.S. and European economies.
As trade discussions stall, the United States is demanding unilateral concessions from Brussels, while the EU advocates for a compromise that offers mutual advantages. Reactions from EU leaders following Trump’s announcement largely supported the European Commission’s stance. Taoiseach Micheál Martin remarked that it would be “very damaging” for President Trump to act on his threats. During an address in Cork, Martin emphasized, “Everybody in the EU is acting in good faith and wants a negotiated settlement with the United States.” He reiterated that the trade relationship between the EU and the U.S. is “the most dynamic in the world.”
Tánaiste Simon Harris echoed this sentiment, stating that Ireland and the EU must focus on achieving a “negotiated settlement” regarding tariff issues. He highlighted that the Irish government advocates for “substantive, calm, measured and comprehensive dialogue” with the U.S. concerning tariffs. Harris reminded everyone that tariffs are ultimately “bad for Ireland, the EU, and the U.S.” as they invariably elevate prices for consumers and businesses alike, underlining the necessity for a sensible response to the prevailing situation.
Poland’s Deputy Economy Minister Michal Baranowski, whose country currently holds the rotating EU presidency, suggested that Trump’s tariff threats might be a tactical maneuver in negotiations. “The European Union and the United States are negotiating,” he stated, indicating that discussions could continue into early July. “Important public statements don’t necessarily translate into actions from the U.S. administration,” he added.
Dutch Prime Minister Dick Schoof affirmed that the EU would maintain its chosen course, remarking, “We have seen that tariffs can go up and down in talks with the U.S.” The EU is facing existing 25% import tariffs on steel, aluminum, and cars from the U.S., and is also confronted with other tariffs that were slated to increase following a temporary pause.
French Trade Minister Laurent Saint-Martin noted that Trump’s renewed threats do not facilitate negotiations. “We are maintaining the same line: de-escalation, but we are ready to respond,” he shared on X.
Recently, the U.S. presented Brussels with a list of demands aimed at shrinking the U.S. goods trade deficit, focusing on non-tariff barriers such as adopting U.S. food safety standards. In response, the EU is proposing a mutually beneficial deal which may include both sides reducing tariffs on industrial goods and potentially expanding the EU’s purchase of liquefied natural gas and soybeans, alongside cooperation on issues like steel overcapacity attributed to China.
The call between Šefčovič and U.S. officials was organized to follow up on previous exchanges, ahead of a prospective meeting in Paris in early June. Robert Sockin, senior global economist at Citigroup, opined that Trump might be trying to bring the EU to the negotiating table. He asserted, “With a 50% tariff, there would be a recessionary forecast for Europe, but I am doubtful it would be enacted.” While the U.S. aims to redress a significant goods trade deficit with the EU, amounting to nearly €200 billion ($226.48 billion) last year, it is essential to recognize that the U.S. also holds a notable trade surplus with the EU in services.
The European Commission has consistently expressed its preference for a negotiated solution but indicated that it stands ready to implement countermeasures if necessary. The bloc had previously suspended duties on €21 billion of annual U.S. imports in response to U.S. metal tariffs, while also compiling a list of €95 billion of U.S. goods designated for countermeasures against U.S. tariffs.
