The European Union‘s (EU) trade chief Maros Sefcovic warned trading between the 27-member bloc and the U.S. would become “almost impossible” if President Donald Trump‘s 30 percent tariff takes effect on August 1.
Sefcovic, European Commissioner for Trade and Economic Security, said that “transatlantic supply chains would be heavily affected on both sides” if Trump’s tariffs kick in and the EU retaliates with “proportionate countermeasures”.
Speaking to reporters ahead of a Brussels meeting of EU trade ministers on Monday, July 14, Sefcovic said Trump’s letter informing of the incoming tariff rate “puts us into a totally different dynamic.”
He felt the transatlantic relationship meant the trade issue “deserved a negotiated solution”.
Trump has sent letters to U.S. trading partners who could not reach a trade deal during the 90-day pause to his reciprocal tariffs, which were first unveiled on April 2, sparking days of turmoil in the global markets
The tariffs are designed to rebalance what Trump says are trading arrangements unfair to the U.S. He wants to either break open global markets for American manufacturers or protect them from unfair global competition.
His E.U. tariffs could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the U.S., and destabilize economies from Portugal to Norway.
Sefcovic said he intends to keep negotiating for a deal before the new deadline, and that his counterparts in the Trump Administration also want to continue with talks. He noted the feeling a “huge responsibility for the biggest trading relationship on this planet.”
“Therefore, I think we have to do, and I will definitely do, everything I can to prevent this super negative scenario,” Sefcovic said.
Brussels decided to suspend retaliatory tariffs on U.S. goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump Administration by the end of the month.
“We shouldn’t impose countermeasures at this stage, but we should prepare to be ready to use all the tools in the toolbox,” said Denmark’s foreign minister, Lars Løkke Rasmussen, told reporters ahead of the meeting.
“So we want a deal, but there’s an old saying: ‘If you want peace, you have to prepare for war.’”
This is a developing article. Updates to follow.
This article includes reporting by The Associated Press.
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