Despite claiming that discussions with the US over trade are continuing on a high level, the European Commission has said it is ready to respond firmly if the tariffs announced by President Trump materialise.
The Commission maintains that dialogue with the US has not broken down, even though President Donald Trump announced on Wednesday evening new tariffs of 25% on EU goods.
“We stand for dialogue, openness and reciprocity,” Commission spokesperson Olof Gill said on Thursday, assuring that high level contacts were taking place between the US administration and the EU. “We are still in the early stage of figuring out what’s going on,” Gill added.
The comment followed a statement by the EU executive on Wednesday night repeating that it is ready to react “firmly” and “immediately” if tariff hikes on EU goods are carried through, but no countermeasures have been announced at this stage.
“The EU will always protect European businesses, workers, and consumers from unjustified tariffs,” Gill said.
In response to the US president’s claim that the bloc was formed to “screw the United States,” Gill added that “the EU has been a boon for the United States,” stressing that “US investments in Europe are highly profitable”.
Trump previously announced that customs duties of 25% would apply from 12 March on all imports of aluminium and steel into the US, including from the EU. His administration is also working on reciprocal tariffs on EU imports, on a country to country basis.
Trade commissioner Maroš Šefčovič travelled last week to Washington to meet his US counterpart Secretary of commerce Howard Lutnick. “It was a very productive meeting,” Gill said, adding that “they had the opportunity to see where the other’s principles and red lines lie”.
The EU and US are engaged in a narrative battle over figures, meanwhile, with Trump claiming that the US suffers from a $300 billion trade deficit with the EU, while the latter argues that any deficit in trade of goods between the blocs is offset by a surplus in trade in services, which the EU claims reduces the US deficit to $50 billion.
“Barriers to fair trade are unjustified, especially between trade partners. It’s a lose-lose for both,” Commission Executive Vice-President Stéphane Séjourné posted on X.
The EU “was formed to maintain peace, to build respect among our nations, to create free and fair trade, and to strengthen our transatlantic friendship. As simple as that,” posted Polish Prime minister Donald Tusk.
The European Commission has been working on retaliation measures for more than two weeks, while attempting to negotiate with the Americans. A list of products already targeted in the trade dispute between the Trump administration in 2018 and the Europeans on aluminium and steel is ready.
An arsenal of anti-coercion measures could also be applied, but the decision-making process would take longer. Such measures could cover services, or trade-related aspects of intellectual property rights.