The European Union should focus on talks with the United States to avoid a trade war while being prepared with countermeasures, Germany's economy ministry said on Wednesday ahead of a video conference of EU ministers.
Trade ministers from the 27 EU members will meet online from 12:00 p.m. (Brasília time). The meeting aims to discuss the bloc's response to US President Donald Trump's decision to impose tariffs of 25% on all steel and aluminum imports. The measure will come into effect from March 12.
European Commission President Ursula von der Leyen called the tariffs unjustified and said they would “trigger firm and proportionate countermeasures.”
An EU diplomat said it was time to keep a “cool head” as the tariffs were still a month away from coming into force.
EU between dialogue and trade retaliation
Economy Minister Robert Habeck will represent Germany at the video conference and is expected to stress the need to avoid a trade dispute. He will also stress the importance of the EU presenting a united front.
For this reason, Habeck reinforced the importance of dialogue between the blocs. In this sense, the ministry declared: “It remains important that the European Commission continues discussions with the US government to reach a solution on the tariffs.”
At the same time, European authorities understand that it is essential to demonstrate firmness. “It must be made clear – and the Commission has already announced this – that it has prepared countermeasures”, the ministry added.
However, the Commission did not provide details on those measures. Among the possibilities, one option would be to revive tariffs that the EU imposed in 2018 on products such as motorcycles and orange juice. Those tariffs were suspended under a truce agreed between von der Leyen and former US President Joe Biden.
Source: Philip Blenkinsop and Julia Payne | Notícias Agrícolas
