The European Union (EU) was not particularly happy when Trump announced tariffs. The EU trades quite a bit with the US, so their economy would have been harmed by these tariffs. EU officials were ready to counter with retaliatory tariffs, but have now put that on hold hoping to negotiate with Trump.
EU Waits on Counter Tariffs
Ursula von der Leyen, President of the EU’s executive branch, has been heavily involved in this process. She said “We took note of the announcement by President Trump. We want to give negotiations a chance.” Additionally, von der Leyen said “While finalizing the adoption of the EU countermeasures that saw strong support from our member states, we will put them on hold for 90 days.” Currently tariffs on European goods are quite high. There is a 20% general tariff on all European goods imported into the US. However, the steel and aluminum tariff is a bit higher at 25%. If these tariffs aren’t changed, the EU claims that they are prepared. They plan on setting tariffs on US goods like soybeans, motorcycles, chewing gum, and other products.
Von der Leyen says that “Preparatory work on further countermeasures continues” and that “all options remain on the table.” Another European spokesperson holds the same sentiment. On Thursday he said “We’re preparing for all outcomes, all our instruments are on the table.” That spokesperson also mentioned that the EU is hoping to negotiate with the US to lower tariffs. The spokesperson said “We’re continuing all our preparations, and we will continue to talk to our member states.”
According to news reports, Maros Sefovic, the EU’s trade commissioner, is in constant communication with Howard Lutnick, US commerce secretary. While details of conversations between the two are unknown, many are happy that there is at least some communication going on. Leaders of both the EU and the US know that these 90 days will be important for the future of economics. Will the US be willing to negotiate, or simply stand firm by tariffs? Only time will tell.
Featured Image Credit: Markus Winkler; Pexels: Thank You!
