The European Union is advocating for a negotiated approach to trade with the United States, as highlighted by European Commission President Ursula von der Leyen. She announced an extension of the EU’s suspension of countermeasures against US tariffs until early August.
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In a recent development, former President Donald Trump issued a threat to impose a steep 30% tariff on imports from both the EU and Mexico, effective August 1. This announcement follows a series of stalled negotiations with key trading partners.
Reflecting on the gravity of the situation, Ms. von der Leyen remarked, “The anti-coercion instrument is created for extraordinary situations; we are not there yet.” This statement referenced a tool that could enable the EU to impose broader restrictions, not just in tariffs on goods, but also in trade in services.
The current suspension of the EU’s retaliatory measures against US steel and aluminum tariffs was set to expire imminently, underscoring the urgency of the situation.
During her recent welcome of President Prabowo Subianto to Brussels, Ms. von der Leyen emphasized the importance of collaboration in challenging times: “We’re living in turbulent times, and when economic uncertainty meets geopolitical volatility, partners like us must come closer together. Today, we’re taking a big step forward in this partnership.”
Meanwhile, Germany’s Finance Minister has stressed the need for the EU to take “decisive” action against US tariffs if a “fair” agreement cannot be reached. Lars Klingbeil told the Sueddeutsche Zeitung, “Serious and solution-oriented negotiations” with the US are imperative, but if those efforts falter, the EU must enact “decisive counter-measures to protect jobs and businesses in Europe.”
He further noted that the proposed tariffs would result in “only losers” and could pose a threat to the US economy as much as to European businesses, asserting that “Europe remains determined and united: we want a fair deal.”
In closing, Mr. Klingbeil reiterated, “Our hand remains outstretched, but we won’t accept just anything.” He emphasized that contingency measures should be prepared in case no agreement is reached, maintaining a strategic and proactive stance.
Edited By Ali Musa
Axadle Times International – Monitoring.
