EU prepares for possible trade war with the US

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The EU is preparing for a possible trade war with the US. Following US President Donald Trump's announcement of new tariffs on imports from Mexico, Canada and China, European heads of state and government expressed their determination at a summit in Brussels not to simply accept similar decisions against the EU.

As a strong economic area, one can react to customs policy with customs policy, warned Chancellor Olaf Scholz (SPD). "We must and will do that." Luxembourg's Prime Minister Luc Frieden and French President Emmanuel Macron, among others, expressed similar views: "We are not weaker than the United States of America. If someone wants a trade war, they will get it," said Frieden. Macron stressed that if Europe is attacked on trade issues, it must gain respect.

Trump: This will definitely happen

Trump had made it clear shortly before that he undoubtedly wants to impose tariffs on imports from the EU. "That will definitely happen for the European Union," Trump said late Sunday evening (local time) near Washington. However, Trump did not provide any specific information on the level of the tariffs or on the product groups that might be affected. There is no timetable, but it will happen "pretty soon."

Diplomats said that the European Commission, led by Ursula von der Leyen, had already prepared a list of US products some time ago that could also be subject to higher tariffs in the event of new US tariffs against the EU. During Trump's first term in office, the EU responded to new duties on steel and aluminium products with special tariffs on bourbon whiskey, Harley-Davidson motorcycles and jeans, among other things.

EU emphasizes willingness to negotiate

Now Trump is threatening to impose double-digit additional tariffs on all imports from the EU. The Republican wants to use this to strengthen the US as a manufacturing base and reduce the trade deficit. It is a thorn in Trump's side that European companies sell significantly more goods in the US than US companies in the EU.

For similar reasons, the US president imposed tariffs of 25 percent on imports from neighboring countries Mexico and Canada over the weekend - the only exception being energy imports from Canada, which are subject to a surcharge of only ten percent. An additional ten percent is due on all imports from China.

After a phone call between Trump and Mexican President Claudia Sheinbaum, both announced that the announced tariffs on all Mexican products would be suspended for a month. Mexico has pledged to reinforce its northern border with 10,000 National Guard soldiers to curb drug trafficking and migration, Trump said.

In addition to the threat of retaliatory tariffs, top EU representatives also emphasized the EU's willingness to negotiate and pointed out the risks of a possible trade war for the US as well. Austrian Chancellor Alexander Schallenberg warned that in a trade war between the EU and the US, China would become the "laughing third party."

EU foreign policy chief Kaja Kallas said transatlantic trade and investment supported more than 16 million jobs on both sides of the Atlantic and accounted for 42 percent of global economic output. "We need America, and America needs us," she said.

The EU has therefore been discussing for some time what offers could be made to Trump. For example, it is conceivable that the EU could import more liquefied natural gas (LNG), military technology and agricultural goods from the US in order to reduce the trade deficit. It would also be possible to reduce import tariffs on US cars.(DPA)

This article originally appeared on FashionUnited.DE. It was translated to English using AI and edited by Rachel Douglass.

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