Brussels is actively seeking to reduce trade tensions with the USA by proposing a mutual elimination of tariffs on industrial goods. EU Commission President Ursula von der Leyen emphasized readiness for negotiations despite recent US tariff decisions. Meanwhile, the German government is preparing countermeasures if talks fail. President Trump shows openness to discussions on tariff relief, but strict import fees remain. The EU plans retaliatory taxes on American products, including jeans and whiskey, as negotiations evolve.
Brussels Seeks De-Escalation in Trade Dispute with the USA
In an effort to ease the ongoing trade tensions with the United States, Brussels has proposed a significant agreement aimed at the mutual elimination of tariffs on industrial goods. This was announced by EU Commission President Ursula von der Leyen, who emphasized Europe’s readiness to engage in constructive negotiations despite the recent tariff decisions made by President Trump.
The European Union’s offer to the USA precedes Trump’s tariff decisions and was reiterated just last Friday. Von der Leyen highlighted that discussions surrounding free trade for automobiles had been initiated multiple times, yet the responses received were insufficient.
Preparing for Countermeasures Amid Negotiations
While the German government remains hopeful for fruitful negotiations, it is also preparing for potential responses to the US’s tariff policies. Von der Leyen made it clear that the EU is actively formulating countermeasures should the talks not yield positive results.
The EU trade ministers convened in Luxembourg to discuss these potential counteractions. Acting Federal Minister for Economic Affairs Robert Habeck cautioned against hasty responses, advocating for a well-prepared strategy to address the situation. He stressed the importance of unity within Europe to prevent any divisions that could exacerbate the conflict, stating, “It is crucial to avoid a tariff war or a tariff race.”
During their meeting, the EU trade ministers are focused on crafting a comprehensive response to the recent US tariffs, with the hope of fostering a more cooperative trade environment.
US Government’s Stance on Tariffs
President Trump has indicated a willingness to engage in discussions regarding the easing of tariffs with trade partners, albeit under specific conditions. However, his Trade Minister, Howard Lutnick, previously signaled that the US will maintain its stringent import fees on goods from a wide range of countries.
The current tariff regime includes a ten percent tariff on all imports into the USA, which took effect on April 5, with country-specific tariffs, including a 20 percent tariff on EU goods, beginning on April 9. Trump aims to address perceived trade imbalances and incentivize domestic production through these tariffs, with revenue from the tariffs also intended to support tax cuts promised during his campaign.
In response to Trump’s recent imposition of special tariffs on steel and aluminum imports, EU trade ministers have decided to implement retaliatory measures starting next Tuesday. This includes the planned reintroduction of special tariffs on various US products such as jeans, bourbon whiskey, motorcycles, and peanut butter, as announced by EU Commissioner Maros Sefcovic.
Additional tariffs on US products are expected to be enacted by mid-May, impacting a wide range of goods, including agricultural products like poultry, beef, and dairy. Moreover, the EU is considering extra tariffs on industrial items, including textiles, leather goods, and household appliances, as they navigate this complex trade landscape.