Three main lines are guiding the leaders of the European Union, who see the threat of tariffs from US President Donald Trump hanging over their heads: the EU must negotiate with the United States at all costs to avoid a trade war. Then, if Mr Trump nevertheless imposes customs duties on European products, the European response will have to be firm. The EU27 will finally have to show unity in their response.
This is the summary of the positions of the EU heads of state or government who spoke on Monday 3 February at a ‘retreat’ on the theme of defence (see EUROPE 13571/1), during which the subject of transatlantic relations figured prominently in the discussions.
Two days earlier, Donald Trump had announced the imposition of tariffs on imports from Canada, Mexico and China, raising concerns that similar measures would be taken on European products. He has since temporarily freezed the measures against Mexico and Canada.
At the Egmont Palace in Brussels, where EU leaders met, there was a clear consensus that a tariff war would hurt both sides of the Atlantic. So now it’s time for negotiations.
“I will never support the principle of allies fighting each other”, said Danish Prime Minister Mette Frederiksen. This is why the EU must adopt a positive attitude and engage in negotiations, according to the leaders of Lithuania, Finland and Poland. “I think that we have to do everything to avoid this totally unnecessary and stupid tariff war”, commented Polish Prime Minister Donald Tusk.
However, several leaders agreed that if the United States imposes tariffs on Europeans, the EU will have to respond firmly and united.
“When targeted, unfairly or arbitrarily, the EU will respond firmly,” assured European Commission President Ursula von der Leyen after the ‘retreat’. She considered that the tariffs decreed by Mr. Trump “will increase business costs, negatively affect workers and consumers, create unnecessary trade disruptions and cause inflation”. She also noticed that the Twenty-Seven are asking the EU to focus on its shortcomings, including its competitiveness deficit.
French President Emmanuel Macron, whose line is among the hardest on trade defence, said that “the EU will have to earn respect and take action”.
The most liberal countries also admit that the EU must prepare to fight back. “If the United States puts tough tariffs on Europe, we need a collective and robust response”, said Ms Frederiksen. Same line for Luxembourg’s Prime Minister, Luc Frieden, who admittedly argued in favour of dialogue, but also for a symmetrical approach: “The response to tariffs is to retaliate with the same actions”.
According to several sources, the European Commission is preparing possible response measures, although it prefers to negotiate with the new US administration.
Businesses on both sides of the Atlantic are worried about punitive tariffs in many sectors. “Tariffs not only lead to countermeasures but also lay the groundwork for protectionist policies more widely, including in the EU”, stressed a concerned American Chamber of Commerce to the EU, AmCham EU. (Original version in French by Léa Marchal with the editorial staff)