The EU is preparing for a possible trade war with the USA.
After the announcement by US President Donald Trump on new tariffs on imports from Mexico, Canada and China, European heads of state and government were determined at a summit in Brussels not to simply accept comparable decisions against the EU.
Chancellor Olaf Scholz (SPD) warned as a strong economic area. “Then we have to and will do that.” Among other things, Luxembourg’s head of government Luc Frieden and France’s President Emmanuel Macron said similarly: “We are not weaker than the United States. If someone wants a trade war, then they get it, ”said Frieden. Macron emphasized that when Europe is attacked at trading topics, one had to get respect.
Trump: This will definitely happen
Trump had made it clear shortly before that he undoubtedly also wanted to impose tariffs on imports from the EU. “This will definitely happen for the European Union,” said Trump late Sunday evening (local time) near Washington. Trump did not provide any specific information about the tariffs and possibly affected product groups. There is no schedule, but “pretty soon” will happen.
From Diplomat: Inside it was said that the European Commission led by Ursula von der Leyen had prepared a list of US products a long time ago, which in the case of new US tariffs against the EU could also be raised. During the first term of trump, the EU had reacted to new taxes on steel and aluminum products with special tariffs on Bourbon Whiskey, Harley-Davidson motorcycles and jeans.
EU emphasized willingness to negotiate
Now the threat of Trump is in the room to improve all imports from the EU additional tariffs in a double -digit amount. The Republican wants to strengthen the production site in the USA and reduce the trade deficit. It is a thorn in the side of Trump that European companies sell significantly more goods in the United States than US companies in the EU.
For similar reasons, the US President had imports from the neighboring countries Mexico and Canada duties in the amount of 25 percent at the weekend-only energy imports from Canada are except for which only surcharges of ten percent are due. An additional ten percent are due on all imports from China.
After a phone call between Trump and Mexico President Claudia Sheinbaum, both announced that the announced tariffs on all Mexican products would be suspended for a month. Mexico has promised to strengthen his northern border with 10,000 soldiers of the national guard in order to curb drug trafficking and migration, Trump explained.
EU top representatives: In addition to the retaliation threats, the EU’s willingness to negotiate the EU and indicated the risks of a possible trade war for the United States. The Austrian Chancellor Alexander Schallenberg warned that in a trade war between the EU and the United States, China would become a “laughing third party”.
The EU foreign commissioner Kaja Kallas said that transatlantic trade and investments secured more than 16 million jobs on both sides of the Atlantic and made 42 percent of global economic output. “We need America and America needs us,” she said.
Therefore, the EU has long been discussing which offers Trump could be made. For example, it is conceivable that the EU could import more liquid gas (LNG), military technology and agricultural goods from the USA in order to reduce the trade deficit. It would also be possible to lower the import tariffs for US cars.