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EU heads for clash with US over tariffs, but remains open to negotiation

After Trump’s move, Brussels warns: ready for countermeasures. Sefcovic: ‘We will do everything we can to avoid it, but Europe must be united and prepared.’

The European Union still hopes to avert a trade war with the United States, but is preparing for all eventualities. The crisis was triggered by a letter sent on Saturday by US President Donald Trump, announcing 30% tariffs on a wide range of European exports starting on 1 August. The measure, considered ‘unjustified and prohibitive’, is now the focus of the extraordinary meeting of the EU Foreign Affairs Council currently underway in Brussels.

‘We have taken note with regret and disappointment of the US president’s letter, especially considering the advanced state of negotiations,’ said EU Trade Commissioner Maros Sefcovic, stressing that the Union had worked hard to reach an agreement that would be beneficial to both sides. ‘We were close to a solution. This step completely changes the dynamics,’ he added.

Transatlantic trade at risk
Sefcovic pointed out that trade between the United States and the European Union is worth $1.7 trillion and generates over $400 billion a day in trade in goods and services. ‘With 30% tariffs, the transatlantic trading system would become unsustainable. No one in the industrial world really wants this scenario,’ he said.

While reiterating the EU’s willingness to continue dialogue and find negotiated solutions, the commissioner warned: ‘We must be prepared for any outcome, including proportionate rebalancing measures. We will discuss the next steps with ministers, including market diversification and engagement with partners who share our values.’

A concrete example of this strategy is the political agreement reached with Indonesia, announced over the weekend: a new step in the EU’s efforts to open up alternative markets in the event of an escalation.

Support from Member States
Sefcovic’s position was also supported by Lokke Rasmussen, Danish Foreign Minister and President-in-Office of the EU Council. “We do not want a trade war, it would be harmful to both sides. But we also have to flex our muscles,‘ he said as he entered the summit in Brussels. ’If necessary, we will have to use all the tools at our disposal.”

Rasmussen praised the work of the Commission’s negotiating team and confirmed the determination of Member States to remain united. “Our relations with Washington are at a critical point, but we remain convinced that a solution is still possible. My recent meeting with US Secretary of Commerce Howard Lutnick confirmed to me that there is still room for negotiation.”

According to the Danish minister, tensions with the United States could open up opportunities for cooperation with other global players. “America accounts for 13% of world trade. The remaining 87% is looking to Europe with interest. We must seize this opportunity,” he said, reiterating that concluding the agreement with Mercosur will be one of the priorities of the Danish presidency.

The 1 August deadline is fast approaching. Brussels is hoping for a last-minute agreement, but is also preparing for a showdown. The stakes are high: not only for Europe, but for the entire global economic balance.

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