BRUSSELS — European Trade Commissioner Maroš Šefčovič traveled to Washington on Tuesday with a portfolio of proposals aimed at securing peace with U.S. President Donald Trump and averting a potential trade war. In an effort to preempt Trump’s threatened tariffs, Šefčovič is set to meet on Wednesday with Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and Kevin Hassett, the president’s chief economic advisor — all of whom are still awaiting confirmation in their roles.
This visit comes at a precarious time for the European Union, following Trump’s announcement that he would reinstate tariffs on steel and aluminum next month, terminating a previously held truce. Trump has also suggested the imposition of reciprocal tariffs that could adversely impact European exporters, particularly in the automotive sector.
Proposed measures to strengthen trade relations
As Brussels has spent the past four years enhancing its trade arsenal, the EU is keen on reaching a deal with Trump before resorting to punitive measures. Among the offers Brussels may present to foster cooperation are:
- Increase imports of natural gas: Trump’s fixation on the €198 billion trade deficit between the U.S. and the EU is driving his tariff threats, which could have costly repercussions for Europe. However, as he champions increased domestic gas production with the mantra “drill, baby, drill,” there is hope that Europe could mitigate trade conflict by purchasing more American liquefied natural gas (LNG), potentially decreasing its reliance on Russian gas imports. Ursula von der Leyen, President of the European Commission, suggested in November, “Why not replace it with American LNG, which is cheaper for us and lowers our energy prices?”
- Make American cars more affordable: Trump’s grievances against the EU center largely on the 10% import tax on cars, while the U.S. imposes a 2.5% tariff, which can reach up to 25% for light trucks. The president has pledged to institute reciprocal tariffs. To counter this, the most straightforward response would be for the EU to lower its tariffs to match those of the United States, a move supported by BMW and Bernd Lange, chair of the European Parliament’s International Trade Committee.
- Collaborate against China: Brussels is beginning to recognize that Trump may not maintain a consistently hardline stance against China as previously suggested. His promised 60% tariffs on Chinese goods have dwindled to 10%, while he has also delayed the ban on the Chinese app TikTok. EU officials are keen to align more closely with Washington’s strategies to counter China’s market practices.
- Boost arms purchases: Encouraging European countries to increase their arms purchases from the U.S. would also demonstrate to Trump that the EU is serious about its security commitments, especially as his administration considers troop withdrawals from Europe. This perspective has been gaining traction in Germany and Italy, supported by Christine Lagarde, President of the European Central Bank, who indicated that EU states might collectively acquire defense systems that they cannot produce domestically.
Limitations on EU negotiations
Despite ongoing discussions, the EU remains firm on certain regulatory stances. It does not intend to compromise on its technology regulations that primarily affect major U.S. firms. Brando Benifei, chair of the European Parliament’s delegation for relations with the United States, emphasized that, “We cannot accept this approach, as we do not believe our legislation is part of a negotiation.” Thus, no changes in U.S. policy are being requested by the EU, signifying the complexities of these transatlantic trade negotiations.
In the coming days, it will be crucial to observe how these proposals are received and whether they can effectively pave the way for a more harmonious trading relationship moving forward.