Brussels: The European Union is responding to the US's latest tariffs on EU goods while keeping the option for negotiations open, Maros Sefcovic, European Commissioner for Trade and Economic Security, told a press conference following an emergency meeting of the Foreign Affairs Council on Trade. The US tariffs now affect £380 billion ($416.8 billion) worth of EU exports-around 70% of the total-with duties ranging from 20% to over 25%, he noted.
According to Anadolu Agency, Sefcovic emphasized that the current trade situation with the United States, the EU's most significant partner, is in a challenging phase. He highlighted his focus on initiating meaningful talks with the US administration and maintaining open and honest communication with US officials. Sefcovic stressed that both the EU and the US face shared challenges, such as global overcapacity, competition in semiconductors, and access to critical minerals. "If we team up, we could build a truly Trans-Atlantic marketplace that benefits both sides," he added.
The EU has already made a strong offer, eliminating tariffs on cars and all industrial goods. However, Sefcovic acknowledged that engaging the US will require time and effort, as the US views tariffs not just as a tactic but as a corrective measure. He reiterated the EU's willingness to negotiate at any time but emphasized that the EU will not wait indefinitely.
"While the EU remains open to and strongly prefers negotiations, we will not wait endlessly until we see tangible progress," Sefcovic asserted. Until there is progress, the EU plans to act on three fronts. First, it will defend its interests with countermeasures. The European Commission has reviewed input from member states and more than 660 stakeholders and is ready to present a strong list of retaliatory tariffs. The list, including exact tariff levels, will be sent to EU countries later in the day, with a vote set for April 9. Duties will be applied in two phases-starting on April 15 and May 15.
Second, the EU is working to diversify its trade by strengthening ties with countries like India, Indonesia, Thailand, the Philippines, and those in the Gulf region. Sefcovic expressed his desire to hear from EU chief negotiators to find ways to expedite talks for new free trade agreements.
Third, the EU will take steps to prevent harmful trade diversions and is ready to use all tools available to protect the single market, EU producers, and consumers. This includes enhancing its import surveillance system to protect the single market and respond swiftly to shifts in global trade flows.
Sefcovic also underscored the EU's commitment to the global trade system, despite the US stepping back from parts of it. "The EU makes up 13% of global goods trade. Our priority, along with the rest of the WTO, is to protect the remaining 87% and make sure that the global trade system prevails for the rest of us," he stated.
On China, Sefcovic shared insights from his recent trip to Beijing. He noted that the visit focused on balancing the EU-China trade and investment relationship, addressing issues like overcapacity, unfair subsidies, and market access barriers affecting European products. The EU also expressed concerns about Chinese investment in Europe's electric vehicle sector and discussed ways to boost local sourcing and innovation. With 91% of e-commerce packages entering the EU from China, Sefcovic highlighted the importance of talks on customs cooperation as a significant step forward. "I believe that this was an important first step in putting our engagement with China on the right track," he concluded.