Brussels pushes for commerce talks with Washington whereas making ready countermeasures on tariffs.
The European Union has signalled its willingness to barter a tariff-free commerce pact with the US, however has indicated it’s also ready to retaliate if mandatory.
Commerce ministers met in Luxembourg on Monday to debate the bloc’s response to US tariffs on metal and aluminium, with most agreeing that launching talks to keep away from an all-out commerce battle ought to be the precedence.
Following the assembly, EU Commerce Commissioner Maros Sefcovic instructed reporters that the bloc’s countermeasures could be adjusted after contemplating member states’ suggestions.
“In relation to metal, aluminium and derivatives, we’re speaking about 26 billion euros [$28bn],” he mentioned. “We’re finalising the checklist tonight, however I can let you know that it’s going to not be as much as the extent of 26 billion euros, as a result of we’ve been listening very rigorously to our member states,” mentioned Sefcovic.
European Fee President Ursula von der Leyen had earlier acknowledged that the EU was ready to barter a “zero-for-zero” tariff settlement on industrial items. Nonetheless, the bloc confirmed that it will start imposing retaliatory duties on chosen US imports subsequent week.
“In the end, we’ll sit on the negotiation desk with the US and discover a mutually acceptable compromise,” Sefcovic mentioned at a information convention.
He added that the primary spherical of EU tariffs on US items would take impact on April 15, with a second wave set for Could 15, in direct response to Washington’s duties on European metal and aluminium.
Escalation is on the desk
Whereas the EU’s choice stays negotiation, Sefcovic warned that the bloc was able to escalate its response if mandatory. This might embrace invoking the Anti-Coercion Instrument (ACI), permitting the EU to limit US corporations’ entry to public contracts or goal American companies.
However some EU international locations, notably uncovered to commerce with the US, urged warning. Irish International Minister Simon Harris described the ACI as “very a lot the nuclear possibility” and mentioned he believed most EU international locations weren’t able to go close to it, at the least for now.
The EU faces 25 p.c US tariffs on metal, aluminium, and automobiles, together with 20 p.c duties on practically all different items below US President Donald Trump’s protectionist insurance policies.
In a battle of tariffs on items, Brussels has much less room to manoeuvre than Washington, given EU items imports from the US totalled 334 billion euros ($366.2bn) in 2024, towards 532 billion euros ($582.1bn) of EU exports to the US.
Dutch Commerce Minister Reinette Klever has urged restraint, warning that speedy escalation might additional disrupt markets.
“We have to stay calm and reply in a means that de-escalates. The inventory markets proper now present what is going to occur if we escalate straightaway. However we will probably be ready to take countermeasures if wanted to get the People on the desk,” mentioned Klever.
Regardless of the EU’s measured strategy, its deliberate tariffs stay contentious.
Trump has already threatened a 200 p.c counter-tariff on EU alcoholic drinks if the bloc proceeds with a proposed 50 p.c obligation on US bourbon. The transfer has raised considerations in France and Italy, key exporters of wine and spirits.
