The attitude of US President Donald Trump is causing Europeans to lose patience. At an extraordinary meeting in Brussels on Monday 14 July, several EU Trade Ministers agreed that it was time for the EU to take a firmer stance.
They were reacting to the letter from the US President published on social networks on Saturday 12 July, threatening to impose a 30% tax on European products on 1 August if negotiations fail. Despite this escalation, the European Commission has decided to extend the suspension of its first package of countermeasures until 1 August, in order to give the negotiations the best possible chance of success.
But the EU27 seem more determined than the Commission to bring into play the power balance with the US administration. “Today, it was very clear around the table, more so than in previous discussions, that we must protect jobs, businesses and the economy, and therefore that we must move towards rebalancing measures”, summarised the European Commissioner for Trade, Maroš Šefčovič, after the Ministers’ meeting.
“We can be tough if the White House wants us to be tough”, said Swedish Foreign Trade Minister Benjamin Dousa on several occasions, whose country has always advocated dialogue and a mutually beneficial agreement. The EU has the cards in its hand to negotiate firmly, in his view: “We have two packages of countermeasures on the way, but we have more tools in the toolbox”. The first of these instruments, the ‘anti-coercion tool’, cannot be ruled out, in his view.
Several of his colleagues made the same point: while trying to find an agreement that limits the damage, the Commission must brandish the threat of retaliation.
“The emphasis must, of course, be on negotiations. But I think we should be putting countermeasures in place at the same time. Both the first package of €21 billion, and the second package of €72 billion, in order to show our strength and our confidence”, declared the Austrian Minister of the Economy, Wolfgang Hattmannsdorfer.
He even spoke out in favour of a third package of countermeasures targeting US digital services. To “make them understand that we need a result”, he said.
The Danish Foreign Minister, Lars Løkke Rasmussen, whose country holds the rotating Presidency of the EU Council, also believes that all the tools must be put forth. And to quote an old adage: “If you want peace, you should prepare for war”.
On the same day in the European Parliament, elected representatives also reiterated their call for the EU to step up a gear in its possible response (see EUROPE 13680/6).
Preparation in progress. In response to these calls for action, on Monday the Commission presented the Member States with the final list making up the second package of European countermeasures. It now only covers goods worth €72 billion, rather than €95 billion (see EUROPE 13636/1). Mr Šefčovič warned that balanced targeting would probably lead to a drop in the volume of trade concerned.
The European Commissioner also reiterated that this second list did not exhaust all European resources, without mentioning the ‘anti-coercion tool’. Because until 1 August, he wants to put all his energy into finding a negotiated solution.
An agreement is still possible. Although disappointed by President Trump’s announcements, Maroš Šefčovič reiterated that an agreement with Washington was within reach. He will remain in close contact with the US Secretary of Commerce, Howard Lutnick, and the US Trade Representative, Jamieson Greer, with whom he was due to meet immediately after the ministerial meeting.
“I got the impression from my American counterparts that, despite the letter, they were prepared to continue the negotiations”, the European Commissioner assured. (Original version in French by Léa Marchal)