The European Union’s trade chief has expressed a strong desire for a trade agreement with the United States rooted in mutual respect rather than intimidation. This statement follows recent threats from US President Donald Trump, who proposed a staggering 50% tariff on all goods exported from the EU to the US.
Commitment to fair negotiations
EU Trade Commissioner Maros Sefcovic emphasized the bloc’s commitment to achieving a deal that benefits both parties after a conversation with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Sefcovic stated, “The EU’s fully engaged, committed to securing a deal that works for both. EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests.”
Global trade dynamics at stake
Trump’s recent comments reflect his frustration with the sluggish pace of ongoing negotiations, indicating his intent to implement tariffs by June 1. In a post on Truth Social, he claimed, “Our discussions with them (the EU) are going nowhere,” and further clarified that there would be no tariffs on products manufactured in the US. He also noted that he is not actively seeking a deal, having already established his terms. However, he hinted that a significant investment from a European firm could lead him to reconsider the timeline.
The EU is a crucial trading partner for the US, trading goods worth over $600 billion in the previous year. This includes $370 billion in imports from the EU, as per US government data.
European leaders have responded to Trump’s tariff threats by cautioning that increased tariffs would adversely affect both economies. Ireland’s Taoiseach (Prime Minister) Micheál Martin remarked, “We do not need to go down this road. Negotiations are the best and only sustainable way forward.” French Foreign Minister Laurent Saint-Martin echoed these sentiments, stating, “We are maintaining the same line: de-escalation, but we are ready to respond.” Meanwhile, German Economy Minister Katherina Reiche underscored the importance of reaching a negotiated resolution with the US.
In previous announcements, Trump had introduced a 20% tariff on a majority of EU goods, later reducing it to 10% until July 8 to facilitate ongoing talks. His administration has voiced concerns regarding the trade imbalance, claiming that the EU exports more to the US than it imports, which he attributes to unfair policies affecting American businesses, particularly in the automotive and agricultural sectors.
Additionally, Trump has warned tech giant Apple of a potential 25% import tax on iPhones not produced in the US, extending this threat to all smartphones. Following these latest developments, stock markets reacted negatively, with the S&P 500 declining approximately 0.7% and European indices such as Germany’s Dax and France’s Cac 40 dropping over 1.5%.