EU Ministers Prioritize Negotiations Over Tariff Retaliation

EU ministers agreed to prioritize talks over countering U.S. tariffs, seeking to avoid a trade war. While preparing countermeasures, they emphasized negotiations, especially concerning steel, aluminum, and cars. With impending U.S. tariffs, the EU aims for a zero-tariff pact but faces challenges in balancing responses while maintaining unity.

On Monday, European Union ministers broadly agreed to place negotiations at the forefront to eliminate tariffs imposed by President Donald Trump, while still preparing for potential countermeasures. The 27-nation bloc is poised to face significant import tariffs on a variety of goods, including a 25% tariff on steel and aluminum, and a 20% tariff on almost all other goods.

Trade ministers gathered in Luxembourg, emphasizing the importance of dialogue to thwart an escalated trade conflict. Calm, strategic responses were highlighted, despite the financial markets signaling potential consequences of rash actions. Dutch Trade Minister Reinette Klever underscored the need to de-escalate tensions by getting the U.S. back to the negotiation table, yet assured readiness for countermeasures if necessary.

Ursula von der Leyen, President of the European Commission, indicated Brussels' willingness to negotiate a 'zero-for-zero' tariff pact, though prior talks with Washington proved challenging. As the EU considers an initial set of countermeasures targeting up to $28 billion worth of U.S. imports, complexities arise with President Trump's threats of severe counter-tariffs on EU goods, such as a 200% tariff on European alcoholic beverages.

(With inputs from agencies.)