EU Struggles Ahead of Trump Tariffs... Prioritizes Negotiations but Ready for 'Retaliatory Tariffs'

First Call Between U.S. and EU Trade Chiefs: "Meeting Soon"
Trade Ministers from 27 EU Countries Hold Conference

The U.S. administration under Donald Trump, following tariffs on steel and aluminum, has announced plans to impose reciprocal tariffs, while the European Union (EU) is making every effort to find a resolution through negotiations. However, the EU has also stated that it will not hesitate to impose retaliatory tariffs if talks break down.

According to Bloomberg and Politico Europe on the 12th (local time), Maro? ?ef?ovi?, the EU Commissioner for Trade and Economy, held initial phone calls with Howard Lutnick, nominee for U.S. Secretary of Commerce and a senior trade official in the Trump administration, Jamison Greer, nominee for U.S. Trade Representative (USTR), and Kevin Hassett, Chairman of the White House National Economic Council (NEC).

EU flag. Photo by Reuters and Yonhap News

Olof Jihl, spokesperson for the EU Commission's trade department, stated that these calls were a form of mutual introduction, and both sides agreed to meet soon. Jihl said, "Cooperation is our preferred option," adding, "We are working to protect the EU's interests while seeking solutions through constructive dialogue and negotiations."

On the 10th, President Trump signed a plan to impose a 25% universal tariff on steel and aluminum. He also hinted at tariffs on automobiles, semiconductors, and pharmaceuticals. On the same day, he announced plans to impose reciprocal tariffs soon. The White House said it would announce the reciprocal tariffs before the summit with Indian Prime Minister Narendra Modi on the 13th.

Ursula von der Leyen, President of the European Commission, immediately after the announcement of steel and aluminum tariffs, warned that such tariffs are unjustified and stated, "Firm and proportionate countermeasures will be taken." However, she left room for negotiation by meeting with U.S. Vice President JD Vance the day before and expressing hopes for continued cooperation.

President Trump has repeatedly complained that the EU treats the United States very unfairly. He has also argued that tariffs should be imposed because the EU runs a trade surplus with the U.S. Since the EU exports 20% of its total steel and aluminum production to the U.S., these tariffs are critical.

The EU has responded actively. On the same day, trade ministers from the 27 EU countries held a video conference to discuss countermeasures against tariffs on steel, aluminum, and other products.

According to EU government officials, the ministers are considering reviving retaliatory tariffs imposed during the first Trump administration in 2018. At that time, the U.S. imposed tariffs on about $7 billion worth of European steel and aluminum citing national security concerns. In response, the EU imposed tariffs on symbolic American products such as bourbon whiskey, Harley-Davidson motorcycles, and Levi's jeans. After the Biden administration took office, the tariffs were suspended, entering a truce, but the EU is now considering restarting them.

While prioritizing negotiations, the level of response will likely be determined by the U.S.'s future actions. Simon Harris, Ireland's Minister for Foreign Affairs, issued a statement saying, "Ireland is aware of the risk of further (tariff) escalation," and "there is room for negotiation before the March 12 deadline." An EU diplomat said that since there is still a month before the tariffs take effect, a calm and measured response is necessary.

This content was produced with the assistance of AI translation services.