European Union officials warned on Monday that countermeasures are still on the table if they cannot reach a trade deal with the United States to avoid the 30 percent tariffs that President Trump announced over the weekend would take effect on Aug. 1.
The EU, which negotiates trade deals on behalf of 27 member states, responded to Trump’s surprise announcement by delaying its own planned countermeasures until Aug. 1 to allow time to negotiate a trade deal with the United States.
EU leaders, who met in Brussels on Monday, expressed optimism at the prospect of a trade deal but made clear they would not hesitate to reverse course if no agreement is struck by Aug. 1.
“The EU remains ready to react and that includes robust and proportionate countermeasures if required and there was a strong feeling in the room of unity,” Denmark’s foreign minister, Lars Løkke Rasmussen, said after the meeting with EU leaders.
The EU’s trade representative, Maroš Šefčovič, told reporters that negotiations would continue Monday and said he’s “absolutely 100 percent sure that a negotiated solution is much better than the tension which we might have after the 1st of August.”
But, he added, “we must be prepared for all outcomes.”
“I cannot imagine walking away without genuine effort,” Šefčovič said. “Having said that, the current uncertainty caused by unjustified tariffs cannot persist indefinitely and therefore we must prepare for all outcomes, including, if necessary, well-considered proportionate countermeasures to restore the balance in our transit-static relationship.”
Trump on Saturday announced his administration would levy a 30 percent tariff on goods from Mexico and members of the European Union beginning Aug. 1, targeting two of America’s top trading partners.
He posted two separate letters addressed to leaders of the respective trading partners to Truth Social. In his letter to European Commission President Ursula von der Leyen, Trump repeated concerns he has expressed in the past, claiming the European Union has long been unfair to the U.S. and that the bloc of nations was created to “screw” America.
“We have had years to discuss our Trading Relationship with The European Union, and have concluded that we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies and Trade Barriers,” the president wrote.
U.S. Census Bureau data shows that Mexico has been the top trading partner with the U.S. so far this year. EU members such as Germany, Italy, France and the Netherlands were also among the top 15.
Von der Leyen told reporters on Sunday that Trump’s letter shows that “we have until the 1st of August” to negotiate.
The Associated Press contributed.
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