EU Grapples with US Tariff Challenges Amid Calls for Diplomatic Solutions
European Commission President Ursula von der Leyen affirmed on Monday that the European Union is open to negotiating a diplomatic resolution to the escalating tariff tensions with the United States. This comes in response to the Trump administration's recent announcement of a 20% tariff on all European goods while providing zero duties for industrial products. After a meeting with Norwegian Prime Minister Jonas Gahr Støre, von der Leyen extended an offer to Washington to completely eliminate tariffs on industrial products, stating, "We are willing to negotiate a good agreement with the United States. In fact, we have offered zero for zero tariffs for industrial goods, as we have successfully done with many other trading partners."
According to community sources, this proposal was relayed by the Commissioner for Trade and Economic Security Maros Sefcovic during a two-hour videoconference with American counterparts Howard Lutnick and Jamieson L Gree. However, despite these efforts, no concrete results were achieved. When pressed by the media, von der Leyen confirmed that the proposal was reiterated specifically for the automotive sector, expressing disappointment over the absence of an adequate response from the US on this matter.
With negotiations stalled, von der Leyen cautioned that the EU is prepared to utilize various instruments in response to the situation, saying, "All instruments are on the table. We must see how the negotiations develop before deciding which instrument we will ultimately use," referring to the anti-coercion tool designed to counter unilateral measures.
In addition, von der Leyen announced the formation of a working group to analyze the indirect implications of these tariffs, particularly regarding potential diversion of European trade. "We will work with the industry to ensure that we have the necessary empirical basis for our policy measures," she added, highlighting the importance of diversifying trade connections beyond the US. She emphasized that the EU is deepening relations with various trading partners and pointed to recent agreements with Mexico, Mercosur, Switzerland, and ongoing discussions with India, Thailand, Malaysia, and Indonesia.
Meanwhile, Sefcovic clarified that the EU's offer of negotiating zero tariffs on industrial goods is a prospective option rather than an immediate possibility. "I hope that in the future we will be ready to return to this discussion. Not now, but I believe that in the future it will still be a possibility," he indicated during a press conference, shortly after von der Leyen's comments.
In Greece, Prime Minister Kyriakos Mitsotakis expressed confidence that the country can temporarily withstand the tariff policies imposed by the Trump administration. However, he stressed the need for a coordinated European response. "Greece can withstand the tariff policy imposed by the United States for the moment," Mitsotakis stated during a televised address before a Cabinet meeting, as reported by the Greek newspaper Kathimerini. He emphasized that a unified and effective response from the EU's member states is crucial.
The looming tariffs on all European goods exported to the US, including a spike to 25% for key sectors like automotive and metals, have stirred concerns among EU leaders. Mitsotakis insisted that the European Union must act decisively and collectively, hinting that the measures to be taken would be revealed in the coming weeks. As the Prime Minister assured that the Greek government is considering all possible scenarios, he reaffirmed the commitment to a policy of fiscal prudence amid ongoing economic recovery following years of crisis.
This regional development highlights the complex landscape faced by the EU in navigating its trade relations with the US while ensuring solidarity among its members amid potential economic tensions.
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