The European Union ministers agreed to grandchildren to prioritize negotiations with the United States to avoid 30%rates, which, according to the EU’s head of commerce, would destroy transatlantic trade.
United States President Donald Trump said on Saturday that it will impose 30% rates on most imports of the European Union from August 1, although diplomats say there is still time to reach an agreement to avoid this.
European Commerce Commissioner, Maros Sefcovic, said he felt that negotiations with US pairs are approaching “a good result for both sides,” but the new tariff threat created “a new dynamic.”
A 30% fare would almost impossible to continue trade as before, with huge consequences for supply chains and negative impacts on both sides of the Atlantic.
“And therefore, I think we have to do it, and I will surely do, everything I can to avoid this supernegative scenario,” he told reporters before a meeting of EU ministers to discuss trade.
Despite Trump’s letter, Sefcovic said he understands that US negotiators are willing to continue negotiations, although he warned that the EU will need to prepare for all results, including possible contracted.
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The commission proposed the suspension of the first package of possible EU tariffs over 21 billion euros (US $ 24.5 billion) in US products. An initial suspension should expire at midnight on Monday.
The EU is also likely to seek the green light for a second package that would reach 72 billion euros from US products.
Denmark Foreign Minister Lars Lokke Rasmussen agreed that it is too early to impose contracted and that he expects the EU to remain united on this front.
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“But we should prepare to use all tools,” he added. “If you want peace, you have to prepare for war. And I think that’s where we are.”
France Minister Laurent Saint-Martin said the EU should go beyond what the committee has so far outlined, stating that the bloc should also consider the possibility of aiming at US services or using its wide “anticking” instrument.
This instrument allows the block to retalize against countries that exercise economic pressure on EU members to change their policies.
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“This balance of power desired by Donald Trump is a balance of power in which you should demonstrate your ability to retaliate. And maybe that we need to accelerate today,” said Saint-Martin.
