The European Union (EU) has reiterated its strong commitment to a respectful trade deal with the United States. The EU gave this message in the wake of Trump’s threat to impose 50 percent import tariffs.
EU Trade Commissioner Maros Sefcovic said, “The EU is fully engaged in the negotiations and wants a deal that works for both sides. EU-US trade is unique and should be conducted on the basis of mutual respect, not threats. We are ready to defend our interests.”
Earlier on Friday, former US President Donald Trump said on social media, “Our negotiations with the EU are not moving anywhere.” He said that from June 1, a 50 percent tariff on European goods will come into effect and there will be no tariffs on goods made in the United States.
Trump told reporters, “I’m not looking for a new deal — we’ve got a deal set.” But he said he could consider suspending tariffs if a European company makes a big investment in the United States. The EU is one of the United States’ biggest trading partners.
The EU exported more than $600 billion in goods to the United States last year and imported $370 billion, according to U.S. government data. In response to Trump’s threat, European countries have warned that additional tariffs would be harmful to both sides.
Irish Prime Minister Micheál Martin said, “There’s no need to go down this path. Negotiations are the only sustainable solution.’
French Foreign Minister Laurent Saint-Martin said, ‘We are committed to the same policy, we want to reduce tensions, but we are ready to react if necessary.’ German Economy Minister Katharina Reiche said, ‘We must do everything to reach a solution with the United States.’
Dutch Prime Minister Dick Schöff said he supported the EU’s trade strategy and commented, ‘We have seen before that tariffs can go up or down during negotiations.’
The EU is negotiating with the United States as a united bloc. However, Stephen Moore, Trump’s former economic adviser, told the BBC that ‘the United States could start negotiations with European countries separately.’ According to him, Trump’s main goal is to isolate not only the United States, but the whole world from Chinese influence, which he believes would be ‘a good thing.’
In early April this year, Trump announced new tariffs against several countries, including Europe. A 20% tariff was imposed on EU products. But he later suspended the tariffs for three months to allow time for negotiations. The 10 percent basic tariff was still in effect.
Although high tariffs on Chinese imports remain in place, they have been reduced somewhat. However, 25 percent tariffs on European steel and aluminum remain in place. The EU had threatened to impose 25 percent tariffs on 18 billion euros of US goods in retaliation, which has been suspended for now. In addition, the European Union is currently considering additional tariffs on 95 billion euros worth of American goods.
Trump has accused Europe of blaming European policies for the trade deficit—especially in cars and agricultural products. He also warned Apple that it would impose at least a 25 percent tariff on iPhones made outside the United States. He later extended the threat to all types of smartphones.
US and European stock markets fell on Friday after Trump’s latest threat. The US S&P 500 fell by about 0.7 percent, while Germany’s DAX and France’s CAC 40 closed down more than 1.5 percent.
Source: BBC