European Union trade ministers voiced strong support on Monday for launching negotiations with Washington to defuse escalating trade tensions, while also preparing targeted countermeasures against U.S. tariffs.
European Union ministers broadly agreed on Monday to prioritise negotiations to remove tariffs imposed by President Donald Trump over retaliation even as it prepared a first set of targeted countermeasures.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars and "reciprocal" tariffs of 20% from Wednesday for almost all other goods under Trump's policy to hit countries he says impose high barriers to U.S. imports.
Ministers overseeing trade met in Luxembourg on Monday to debate the EU's response, as well as discuss relations with China. Many said the priority was to launch negotiations and avert an outright trade war.
"We need to remain calm and respond in a way that de-escalates. The stock markets right now show what will happen if we escalate straightaway. But we will be prepared to take countermeasures if needed to get the Americans at the table," Dutch Trade Minister Reinette Klever told reporters.
European Commission President Ursula von der Leyen told a press conference in Brussels that the EU stood ready to negotiate a "zero-for-zero" tariff pact for industrial goods.
Talks with Washington to date have proven difficult. EU Trade Commissioner Maros Sefcovic described his two-hour exchange with U.S. counterparts on Friday as "frank" as he told them their tariffs were "damaging, unjustified".
The bloc is likely to approve this week an initial set of countermeasures on up to $28 billion of U.S. imports ranging from dental floss to diamonds, in response to Trump's steel and aluminium tariffs rather than the broader reciprocal levies.
But even that move has proven fraught, with Trump threatening a 200% counter-tariff on EU alcoholic drinks if the bloc goes ahead with an earmarked 50% duty on U.S. bourbon.
France and Italy, major exporters of wine and spirits, have expressed concern.
The 27-nation bloc is expected to produce a larger package of countermeasures by the end of April, as a response to U.S. car and "reciprocal" tariffs.
However, in a war of tariffs on goods, Brussels has less to target than Washington, given U.S. goods imports into the EU totalled 334 billion euros ($366.2 billion) in 2024, against 532 billion euros of EU exports.
French Trade Minister Laurent Saint-Martin said there should be no taboos, including the EU's Anti-Coercion Instrument (ACI), which would allow it to target U.S. services or to limit U.S. companies' access to public procurement tenders in the EU.
"We cannot exclude any options on goods or services and, however we approach it, open the box to the European tool which is very comprehensive and which can be extremely aggressive," he said.
Others, however, urged caution.
Simon Harris, foreign minister of Ireland, almost a third of whose exports go to the U.S., described the ACI as "very much the nuclear option" and said he believed the majority view in the EU was not to go near it, at least for now.
German Economy Minister Robert Habeck, whose Greens will not be part of the next governing coalition, said the EU should realise it was in a strong position - if it was united.
"The stock markets are already collapsing and the damage could become even greater ... America is in a position of weakness," he said in Luxembourg. Habeck added that Trump lieutenant Elon Musk's hope of zero tariffs between Europe and the United States reflected this point.
But he added, regarding countermeasures: "If we have every (EU) country coming out saying they have a problem here with red wine and there with whiskey and here with pistachios, then we will end up with nothing."
($1 = 0.9121 euros)
Iran has signed a secret €500 million arms deal with Russia to rebuild air defences, weakened during last year’s war with Israel, the Financial Ti...
European Union foreign policy chief Kaja Kallas has said the bloc is unlikely to reach agreement on a new package of sanctions against Russia at Monda...
The European Parliament’s trade chief has urged a temporary suspension of the EU–U.S. trade agreement approval, citing “tariff chaos” followin...
Further Iran-U.S. nuclear talks are scheduled in Geneva on Thursday (26 February) as diplomacy resumes over Tehran’s nuclear programme following ear...
China says it's making a "full assessment" of the U.S. Supreme Court's tariff ruling and urged Washington to lift "relevant unilateral tariff measures...
Iran has signed a secret €500 million arms deal with Russia to rebuild air defences, weakened during last year’s war with Israel, the Financial Times has reported. The agreement, signed in December in Moscow, will see Russia deliver 500 Verba launch units and 2,500 9M336 missiles over three years.
European Union foreign policy chief Kaja Kallas has said the bloc is unlikely to reach agreement on a new package of sanctions against Russia at Monday’s meeting of EU foreign ministers, as continued Hungarian opposition keeps consensus out of reach.
The European Parliament’s trade chief has urged a temporary suspension of the EU–U.S. trade agreement approval, citing “tariff chaos” following President Donald Trump’s new 15% tariffs and a U.S. Supreme Court ruling invalidating his previous global tariff programme.
Further Iran-U.S. nuclear talks are scheduled in Geneva on Thursday (26 February) as diplomacy resumes over Tehran’s nuclear programme following earlier mediation efforts. But will the talks move Iran-U.S. negotiations closer to a deal, and what should be expected from the meeting?
A seven-month-old Japanese macaque has drawn international attention after forming an unusual bond with a stuffed orangutan toy after being rejected by its mother.
Divers have recovered the bodies of seven Chinese tourists and a Russian driver after their minibus broke through the ice of on Lake Baikal in Russia, authorities said.
President Donald Trump said on Saturday (21 February) that he will raise temporary tariffs on nearly all U.S. imports from 10% to 15%, the maximum allowed under the law, after the Supreme Court struck down his previous tariff program.
Pakistan said it carried out cross-border strikes on militant targets inside Afghanistan after blaming a series of recent suicide bombings, including attacks during the holy month of Ramadan, on fighters it said were operating from Afghan territory.
Iran announced on Saturday (21 February) that it has designated the naval and air forces of European Union member states as “terrorist entities” in a reciprocal move after the EU blacklisted the Islamic Revolutionary Guard Corps (IRGC).
European Union foreign policy chief Kaja Kallas has said the bloc is unlikely to reach agreement on a new package of sanctions against Russia at Monday’s meeting of EU foreign ministers, as continued Hungarian opposition keeps consensus out of reach.
Further Iran-U.S. nuclear talks are scheduled in Geneva on Thursday (26 February) as diplomacy resumes over Tehran’s nuclear programme following earlier mediation efforts. But will the talks move Iran-U.S. negotiations closer to a deal, and what should be expected from the meeting?
China says it's making a "full assessment" of the U.S. Supreme Court's tariff ruling and urged Washington to lift "relevant unilateral tariff measures" on its trading partners, the Chinese commerce ministry said in a statement on Monday (23 February).
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 23rd of February, covering the latest developments you need to know.
A “Victory will be ours” banner was hung on the Russian Embassy in Seoul, ahead of the fourth anniversary of Russia’s full-scale invasion of Ukraine. It remains on display despite a request from the South Korean Foreign Ministry on Sunday (22 February) for its removal, sparking widespread criticism.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment