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Tuesday, Apr 08, 2025

EU Readies Response to US Tariffs Amid Ongoing Negotiations

Ursula von der Leyen emphasizes a proportional approach as EU ministers discuss strategies in Luxembourg.
Brussels - The European Union is actively engaged in negotiations with the United States regarding proposed tariffs, according to Ursula von der Leyen, the President of the European Commission.

In a recent telephone conversation with UK Prime Minister Keir Starmer, von der Leyen reiterated the EU’s commitment to negotiation while emphasizing that the bloc is prepared to protect its interests through proportional countermeasures if necessary.

The term "proportional" is intended to convey the EU's desire to avoid escalating tensions.

Von der Leyen expressed profound concern regarding the tariffs announced by former President Donald Trump on April 2, highlighting the potential adverse effects on all countries, including indirect impacts on the world's poorest nations.

She conveyed the EU’s determination to collaborate with partners to respond to the evolving economic landscape, acknowledging that each trading partner will act based on its priorities.

On April 7, the Trade Ministers of the EU's 27 member states will convene in Luxembourg to discuss their initial response to these reciprocal tariffs, although no concrete decisions are anticipated.

A diplomatic source indicated that the aim of the meeting is to conclude with a unified message, keeping in mind that trade policies fall under the exclusive competence of the Commission.

This meeting will serve as an opportunity to formulate a political leverage for the subsequent commercial response.

Commissioner for Trade Maroš Šefčovič will report on a two-hour meeting held on April 5 with U.S. Secretary of Commerce Howard Lutnick and Ambassador Jamieson Greer, which Šefčovič described as a "frank" exchange—diplomatic language suggesting a candid and possibly confrontational dialogue.

Additionally, he will update ministers on his recent mission to China.

The Commission's strategy includes not excluding any options to negotiate from a position of strength, contemplating both counter-tariffs and other potential measures.

Brussels has opted to refrain from making public announcements regarding specific responses.

French Finance Minister Eric Lombard commented in an interview that the EU has various tools at its disposal, including regulatory measures at the European level, which could involve strengthening environmental requirements or regulating the use of data by certain digital actors.

Another tool under consideration is the anti-coercion mechanism, though it is viewed as a last resort and current discussions have not focused on this option.

The proposal for intervention will come from the Commission, which has exhibited a cautious yet firm stance in its public statements.

Efforts are concentrated on utilizing all possible channels to advance negotiations with the Trump administration.

This context underlines the significance of Italian Prime Minister Giorgia Meloni's potential trip to Washington on April 16, as von der Leyen highlighted in an interview that more connections between the two sides of the Atlantic are beneficial and described Meloni’s relationship with Trump as "very positive."

The Commission plans to present two lists of U.S. products, valued at €26 billion, that would face tariffs in retaliation for the U.S. tariffs on EU-made steel and aluminum.

A vote is expected on April 9, and should it proceed, the EU countermeasures would take effect on April 15, though the majority of tariffs would be collected from May 15 onwards.

The timeline for responding to the reciprocal tariffs may take longer, prompting concerns among EU nations about potential escalation from countermeasures.

Polish Finance Minister Andrzej Domanski advised against a hasty and radical response in an interview, stressing a measured approach as negotiations continue.
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