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EU Seeks US Trade Talk on Trump Tariff Threats
Trump Said May 1 He Would Raise Car, Truck Tariff to 25% on EU
Europe is ready to respond should President Donald Trump follow through on his threat to raise tariffs on cars and trucks from the European Union to 25%, according to Eurogroup President Kyriakos Pierrakakis.
“The No. 1 choice is always dialogue — we want to be a predictable partner in the international economy, we believe in the transatlantic relationship,” he told Bloomberg Television. “But having said this, if there is a deviation from what we have agreed upon, obviously all options are on the table and all choices will be on the table.”
The spat has added to tensions over the much-delayed U.S.-EU trade deal. The two sides initially reached an agreement last July, but EU lawmakers have yet to ratify the pact as they seek further amendments. Trump claimed on May 1 that the EU had failed to fully comply with a trade pact.
Pierrakakis — speaking ahead of a meeting of euro-area finance ministers in Brussels on May 4 — refuted that, saying the bloc has “met all prerequisites in this equation.”
“Our side of the bargain has been fully met, has been fully kept with regards to the joint statement commitment and the legislative timetable which we had in order to pass them,” he said. “We need to speed up, we know that. But there is predictability on our end.”
Even before the May 1 threat, the EU was unhappy with the U.S. tariffs on steel and aluminum products despite a recent revision by the Trump administration, as nearly half of the EU exports using these metals would end up having higher duties. Although both sides agreed to continue talks to address this long-standing irritant since the agreement was reached, the European Commission told EU envoys last week that it’s ready to respond if necessary.
Trump’s latest tariff salvo renewed a contentious trade fight with a major economic bloc even as the Iran war and the resultant spike in energy prices place fresh strains on the global economy.
“Needless to say, this discussion that’s currently taking place is quite unnecessary and quite unfortunate,” said Pierrakakis, who also is Greece’s finance minister. “The last thing the global and the European economy needs right now is an extra layer of uncertainty on top of what’s happening in the Strait of Hormuz and in the Middle East.”
The economic fallout has led governments across Europe to introduce support packages for households and businesses.
“The measures that have worked are the ones that are most targeted” for those most in need, Pierrakakis said. Right now, “we have the proper analysis of the state of play, we have the proper response at the European level” because “you don’t want the energy crisis to fuel a fiscal crisis.”
Written by Oliver Crook, Nick Heubeck and Jorge Valero
