EU Prepares for Trade Negotiations as US Imposes New Tariffs
Ursula von der Leyen highlights potential economic repercussions as US tariffs on the EU loom.
Ursula von der Leyen, President of the European Commission, emphasized on Thursday that the European Union is "ready to negotiate" with the United States in response to newly announced tariffs by President Donald Trump, which impose a 20% duty on EU goods.
Speaking from Samarkand, Uzbekistan, von der Leyen described the potential consequences as "immense" and characterized the tariffs as having "nefarious effects" that would serve as "a significant blow to the global economy." She indicated that the EU is prepared to implement countermeasures if an agreement is not reached with the US administration.
European sources have indicated that the projected impact of the tariffs could amount to approximately €81 billion, although they noted that this estimate assumes that trade levels will remain constant, which they argue is unlikely.
Von der Leyen highlighted various challenges arising from the tariffs, including increased uncertainty, disruptions in supply chains, and greater business costs associated with trade with the United States.
Von der Leyen refrained from emphasizing immediate countermeasures but stated that preparations are underway to protect EU interests and businesses should negotiations fail.
This reflects the EU's strategic approach to exhaust all negotiation avenues with Washington, despite previous unsuccessful attempts.
Maros Sefcovic, the EU Commissioner for Trade and Security, has made several trips to the US, offering to reduce trade barriers and tariffs, though without success.
His most recent visit took place last week with Bjoern Seibert, von der Leyen's chief of staff.
Upon their return, Sefcovic and Seibert understood that any forthcoming actions would not prevent the tariff announcement by Trump.
European Commission officials believe the focus now should shift to negotiating tariff reductions, acknowledging that the previous scenario of avoiding tariffs is no longer feasible.
Italy's government, closely aligned with the new American administration, has echoed this sentiment.
Foreign Minister Antonio Tajani called for a "pragmatic, dialogue-based response," underscoring the need for constructive negotiation.
Von der Leyen has chosen to criticize Trump's announcement but primarily aims to offer a pathway for negotiation.
On Friday, Sefcovic intends to reach out to his American counterparts to initiate discussions.
She acknowledged that while Trump is right that certain parties exploit current trade norms, she remains clear that tariffs should not be the primary solution.
European Council President António Costa has expressed full support for the European Commission's efforts in negotiating with the US. Similarly, Swedish Prime Minister Ulf Kristersson voiced regret over the course the US has taken, indicating a desire to avoid a trade war that could lead to economic detriment for all societies.
Von der Leyen also noted that the EU is finalizing countermeasures worth €26 billion in response to existing US tariffs on steel and aluminum, which are set to take effect mid-month.
This response package has been meticulously designed to impact primarily Republican states and target products that can be easily substituted in global markets.
In recent discussions in Brussels, the potential for the European Commission to retaliate through measures against major digital companies, which are sensitive to the current American administration, has been on the table.
Furthermore, there is consideration of using the Anti-Coercion Instrument (ACI), originally conceived to counteract coercive trade practices from countries like China, but it may now be applied against the United States.
The ACI provides the European Commission with a wide range of options to respond to coercive trade practices.
Speaking from Samarkand, Uzbekistan, von der Leyen described the potential consequences as "immense" and characterized the tariffs as having "nefarious effects" that would serve as "a significant blow to the global economy." She indicated that the EU is prepared to implement countermeasures if an agreement is not reached with the US administration.
European sources have indicated that the projected impact of the tariffs could amount to approximately €81 billion, although they noted that this estimate assumes that trade levels will remain constant, which they argue is unlikely.
Von der Leyen highlighted various challenges arising from the tariffs, including increased uncertainty, disruptions in supply chains, and greater business costs associated with trade with the United States.
Von der Leyen refrained from emphasizing immediate countermeasures but stated that preparations are underway to protect EU interests and businesses should negotiations fail.
This reflects the EU's strategic approach to exhaust all negotiation avenues with Washington, despite previous unsuccessful attempts.
Maros Sefcovic, the EU Commissioner for Trade and Security, has made several trips to the US, offering to reduce trade barriers and tariffs, though without success.
His most recent visit took place last week with Bjoern Seibert, von der Leyen's chief of staff.
Upon their return, Sefcovic and Seibert understood that any forthcoming actions would not prevent the tariff announcement by Trump.
European Commission officials believe the focus now should shift to negotiating tariff reductions, acknowledging that the previous scenario of avoiding tariffs is no longer feasible.
Italy's government, closely aligned with the new American administration, has echoed this sentiment.
Foreign Minister Antonio Tajani called for a "pragmatic, dialogue-based response," underscoring the need for constructive negotiation.
Von der Leyen has chosen to criticize Trump's announcement but primarily aims to offer a pathway for negotiation.
On Friday, Sefcovic intends to reach out to his American counterparts to initiate discussions.
She acknowledged that while Trump is right that certain parties exploit current trade norms, she remains clear that tariffs should not be the primary solution.
European Council President António Costa has expressed full support for the European Commission's efforts in negotiating with the US. Similarly, Swedish Prime Minister Ulf Kristersson voiced regret over the course the US has taken, indicating a desire to avoid a trade war that could lead to economic detriment for all societies.
Von der Leyen also noted that the EU is finalizing countermeasures worth €26 billion in response to existing US tariffs on steel and aluminum, which are set to take effect mid-month.
This response package has been meticulously designed to impact primarily Republican states and target products that can be easily substituted in global markets.
In recent discussions in Brussels, the potential for the European Commission to retaliate through measures against major digital companies, which are sensitive to the current American administration, has been on the table.
Furthermore, there is consideration of using the Anti-Coercion Instrument (ACI), originally conceived to counteract coercive trade practices from countries like China, but it may now be applied against the United States.
The ACI provides the European Commission with a wide range of options to respond to coercive trade practices.
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