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Thursday, December 5, 2024

EU Prepares for Trade Showdown with Trump Administration

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AP Newsis

EU trade ministers have agreed to prepare for constructive trade negotiations with a potential second Trump administration while ensuring a unified response to any challenges.

On Thursday, Valdis Dombrovskis, the EU’s Executive Vice-President for Trade, addressed the press, sharing that EU trade ministers discussed approaching future relations with a likely Trump administration. He noted that ministers had a broad consensus to maintain constructive cooperation with the U.S., avoid reopening past trade disputes, and work to prevent new conflicts. However, Dombrovskis emphasized, “If new measures are introduced that negatively impact the European economy or businesses, we must be ready to respond in a coordinated, precise, and proportional way.” This suggests that the EU is prepared to retaliate with corresponding actions if the U.S. imposes new tariffs.

Under the Trump administration, the EU faced significant trade tensions with the United States. In 2018, the Trump administration imposed high tariffs on steel and aluminum imports from several countries, including the EU. In response, the EU implemented retaliatory tariffs on various U.S. goods, sparking a trade dispute between the two sides. During his re-election campaign, Trump pledged to impose a universal tariff of up to 20% on all imports. He also criticized European car manufacturers and promised to levy extensive tariffs on imported vehicles should he return to office.

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