The European Union’s trade commissioner has affirmed the 27-member bloc’s dedication to securing a trade agreement with the United States, emphasizing that such a deal must be founded on “respect” rather than “threats.” This statement follows recent remarks by US President Donald Trump, who threatened to impose a 50% tariff on all goods imported into the US from the EU.
“The EU’s fully engaged, committed to securing a deal that works for both,” stated EU Trade Commissioner Maros Sefcovic following a discussion with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. He further emphasized the significance of EU-US trade, stating that it is “unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests.”
Earlier on Friday, President Trump expressed dissatisfaction with the progress of ongoing trade negotiations between the EU and the US, reiterating his plan to potentially raise tariffs on June 1. In a social media post, Trump asserted that discussions with the EU were “going nowhere,” clarifying that tariffs would not apply to products manufactured or built within the United States. Later, speaking to reporters, Trump declared, “I’m not looking for a deal – we’ve set the deal,” before suggesting that a substantial investment in the US by a European company might prompt him to consider a delay in implementing the tariffs.
The EU stands as one of Washington’s most significant trading partners. US government data reveals that the EU exported over $600 billion worth of goods to the US last year while importing $370 billion in US products.
In response to President Trump’s tariff threats, several European governments cautioned that escalating tariffs would be detrimental to both the US and the EU. Ireland’s Taoiseach (Prime Minister), Micheál Martin, stated, “We do not need to go down this road. Negotiations are the best and only sustainable way forward.” Similarly, France’s Trade Minister, Laurent Saint-Martin, affirmed their stance of seeking de-escalation but emphasized their readiness to respond if necessary. Germany’s Economy Minister, Katherina Reiche, indicated that the EU “must do everything” to reach a resolution with the US. Dutch Prime Minister Dick Schoof conveyed his support for the EU’s negotiation strategy, noting that “we have seen before that tariffs can go up and down in talks with the US.”
While the EU is negotiating as a unified bloc, Stephen Moore, a former economic advisor to President Trump associated with the conservative think tank, the Heritage Foundation, suggested the possibility of the US pursuing individual trade agreements with specific European nations. Moore also commented on President Trump’s broader trade objectives, stating his belief that Trump’s “ultimate aim is really to decouple not just the US but the whole world from Chinese influence which would be a very good thing if he could pull that off.”
In early April, President Trump announced tariffs targeting a wide range of countries, including a potential 20% tax on the majority of EU goods entering the US. Subsequently, he temporarily suspended these higher tariffs for three months, until July 8, to facilitate further negotiations, while maintaining a baseline 10% tax on imports from the US’s trade partners. Higher US tariffs on Chinese goods also remained in effect, albeit at significantly reduced levels. Despite this temporary reprieve, a 25% US tariff on EU steel and aluminum imports remains in place.
The EU has previously threatened and then suspended its own retaliatory measures against the US. These measures included a proposed 25% tariff on €18 billion worth of US goods entering Europe, which has been put on hold. The EU is also currently considering additional measures targeting US imports valued at €95 billion.
President Trump’s concerns regarding trade with Europe have primarily centered on what he perceives as an imbalanced relationship, with the EU exporting more goods to the US than it imports from America. He attributes this trade deficit to policies he claims are unfair to American companies, specifically raising issues related to the automotive and agricultural sectors.
Furthermore, President Trump cautioned Apple about a potential 25% import tax “at least” on iPhones not manufactured in the US, later extending this threat to include all smartphones.
The latest trade threats led to a decline in stock markets in both the US and the EU on Friday. America’s S&P 500 index fell by approximately 0.7%, while Germany’s Dax and France’s Cac 40 both closed the trading day with losses exceeding 1.5%.
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