Trump's 30% tariffs will "practically ban" trade between the EU and the US - EU Commissioner
Kyiv • UNN
US President Donald Trump threatens to impose 30% tariffs on European goods from August 1, which, according to the EU's chief negotiator with the US, Maroš Šefčovič, will "practically ban" transatlantic trade. The EU has postponed the introduction of retaliatory tariffs on American goods until August 1 and is discussing further countermeasures.
US President Donald Trump's threat to impose 30% tariffs on European goods will "practically ban" transatlantic trade. This was stated by the EU's chief negotiator with the US, Maroš Šefčovič, according to UNN, citing The Guardian.
Details
Arriving for talks with European ministers in Brussels, EU Trade Commissioner Maroš Šefčovič stated that tariffs of 30% and above would have huge consequences, making it "practically impossible" to continue current transatlantic trade, which amounts to 4.4 billion euros (3.8 billion pounds).
Expressing frustration, he said his negotiating team believed they were close to reaching a deal. "We felt we were very close to a deal," he said, adding that both sides had been negotiating an agreement in principle – draft agreement – for four weeks before Trump's abrupt statement over the weekend.
The publication notes that the EU will be at a loss, pondering how to conduct trade negotiations after Trump's threat to impose a 30% tariff.
Additionally
The US President announced on Saturday that imports from the EU would be subject to a 30% tariff from August 1, which undermined the optimism of Europeans who believed that negotiations for a 10% tariff were almost complete.
In response to the latest deadline set by Trump, the EU decided to postpone the introduction of retaliatory tariffs on American goods worth 21 billion euros, which were supposed to come into effect at midnight on Monday, until August 1.
Ministers will also discuss plans for a new round of retaliatory measures targeting 72 billion euros of American imports into the EU.
Danish Foreign Minister Lars Løkke Rasmussen, who will chair the talks, said that Europe does not want a trade war with the US, which would be "devastating" for both sides. "We don't want escalation, but on the other hand, we also need to show strength," he said.
France called for accelerating the preparation of countermeasures and stated that the EU must be ready to use its untested "anti-coercion instrument" — a law on imposing punitive measures against a country that is believed to be using trade as a weapon.
Germany, striking a different tone, called for a "pragmatic" response, while Italy warned against a trade war. Central and Eastern European countries are also concerned that countermeasures could provoke a cessation of US military support in Europe.
Lithuanian Foreign Minister Kęstutis Budrys stated that the EU needs to avoid escalation, citing "geoeconomic challenges" and "issues that we need to address together with the US, such as fentanyl."