The EU is moving forward with its preparations for talks with President Donald Trump, including tough negotiations to address the US trade deficit, EU trade chief Maroš Šefčovič said today. It is understood that the European Commission has already discussed with some EU governments its plan to respond to potential US tariffs or other trade restrictions.
The EU is moving forward with its preparations for talks with President Donald Trump, including tough negotiations to address the US trade deficit, EU trade chief Maroš Šefčovič said today. It is understood that the European Commission has already discussed with some EU governments its plan to respond to potential US tariffs or other trade restrictions.Trump last Friday announced plans for tariffs on Mexico, Canada and China, saying at the same time that he would also “absolutely” target the EU with tariffs to address what he said was a large US trade deficit with the bloc (see here).
Šefčovič today stressed a need for future talks to be based on “real facts and figures” and to consider both trade in goods and services. If put together, he said, the trade flows show a US deficit to the EU of only around 50 billion euros ($53 billion).
“So we're ready for the positive engagement, for the constructive agenda. We are ready to work on what I hope will be a mutually advantageous positive package for both of our economies,” Šefčovič told a press conference today after a meeting in Warsaw of trade and competition ministers from EU countries.
The European Commission, which oversees the bloc’s trade policy, has been working on a strategy to deal with Trump's confrontational approach, including the possibility of steep tariffs on US imports of EU cars, steel, aluminum or pharmaceuticals. Trump said last week that the US was planning tariffs on those products, without specifying any targeted economies or countries.
The commission discussed the contours or main points of its plan with some EU governments, a senior EU diplomat has said. He suggested that the blueprint follows “the same logic – inflicting maximum pain without escalating” as the EU response to US tariffs on steel and aluminum that were imposed by Trump during his first term. But the diplomat also said that the details of the bloc’s strategy need to be kept secret not to weaken its position in potential talks with the US.
Šefčovič said he hoped to meet his US counterpart Howard Lutnick shortly after he is formally confirmed for the post of the new US Secretary of Commerce.
Some EU diplomats are worried that Trump might move ahead with tariffs against the bloc before the two administrations formally meet. It is understood that the two administrations haven’t established any channels for communication yet.
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