Trump Administration and EU Negotiate to Avoid Trade War
EU Trade Chief Maros Sefcovic expressed optimism about avoiding a trade war with the United States following “intense” talks with senior officials from the Trump administration. The discussions, which lasted four hours, focused heavily on steel and potential tariff reductions1.
Key points from the talks:
- Sefcovic met with newly confirmed US Commerce Secretary Howard Lutnick, National Economic Council Director Kevin Hassett, and US Trade Representative nominee Jamieson Greer.
- The EU is willing to work with the Trump administration on a deal to lower tariffs for industrial goods and boost purchases of American exports like natural gas and soybeans.
- The EU is ready to consider reducing its 10% tariff on imported cars, which has been a point of contention with the US 2.5% rate.
- Sefcovic proposed an alliance between the EU and US to combat Chinese “overcapacities” in steel and aluminum production as an alternative to tariff conflicts.
- The EU trade chief emphasized that reciprocity in tariffs should work for both the bloc and Washington.
Sefcovic highlighted that the overall US tariffs on the EU amounted to around 1.4%, while overall EU tariffs on US goods were slightly higher. He expressed hope that the momentum generated from these “good” meetings could lead to a negotiated solution.
The talks come as the Trump administration is expected to implement a 25% tariff on foreign steel and aluminum on March 12, with additional “reciprocal tariffs” potentially following on April 2.
Both sides recognize the need to address global overcapacity in industries such as steel, with Chinese output seen as a key concern. Sefcovic urged, “Let’s not target each other’s steel and aluminum sectors”.
As the EU phases out Russian gas, Sefcovic noted that Europe could be a significant partner for American liquefied natural gas exporters, and increased soybean purchases from the US are another area for potential cooperation.
These discussions reflect ongoing efforts to maintain the strong economic relationship between the EU and US, which Brussels considers “the most integrated economic relationship in the world”.
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- EU trade chief says tariff reciprocity ‘must work for both’ bloc and US – France 24
- EU trade chief hopeful about averting US tariffs after ‘intense’ talks – South China Morning Post
- EU Trade Chief Says Ready to Work With US on Lower Tariffs – Bloomberg Law
- EU Official Meets With Trump Counterparts to Resolve Tariff Threats – U.S. News & World Report
- EU trade chief says US shows willingness to work avoid tariff pain – Reuters
