EU PLANS COUNTERMEASURES IF TARIFF NEGOTIATIONS FAIL WITH US

BRUSSELS, April 12 (Bernama-Anadolu) -- The EU is prioritising negotiations with Washington, but the bloc is planning countermeasures against the US if tariff negotiations are not satisfactory, via retaliation and trade diversification, Anadolu Ajansi (AA) reported.

US President Donald Trump’s protectionism and “America First” approach drove a wedge between the EU and the US. The two sides have the world’s largest trade and investment relationship, with an annual volume of more than $1.7 trillion.

Trump’s aggressive policies and harsh rhetoric in both his first and second terms weakened the perception of a mutual alliance.

EU exports to the US totalled $605.8 billion, while US imports to the bloc hit $379.9 billion last year, according to data compiled by Anadolu. The EU had a surplus of $225.8 billion, and Trump is not happy with such trade deficits.

EU countries were upset by the 25 per cent steel and aluminium tariffs Trump imposed, and the EU said it would respond swiftly and proportionately while prioritising negotiations. Meanwhile, Washington hit the EU with 25 per cent auto tariffs.

The EU also faced reciprocal tariffs of 20 per cent on the entirety of the bloc.

The EU’s efforts to negotiate have not been reciprocated, and the bloc is prepared to retaliate against the steel and aluminium tariffs via phased countermeasures, the first of which will begin on April 15.

At the same time, Trump’s tariff war with China continued, raising tariffs on Beijing to 125 per cent, while issuing a 90-day tariff pause on other countries. He said more than 75 countries are negotiating with him on tariffs and are not retaliating.

A baseline 10 per cent reciprocal tariff will still be active during the pause, which gives breathing room to European countries.

EU Commission President Ursula von der Leyen welcomed the suspension of tariffs as an important step toward stabilisation, noting that the EU is committed to negotiations.

She said the bloc will diversify its trade partners by engaging with other countries, which account for 87 per cent of global trade, while accelerating efforts to remove barriers in the bloc’s market. She said the EU would suspend countermeasures against the US for the duration of the 90-day pause, giving the bloc ample space and time for negotiations.

-- BERNAMA-ANADOLU

RMI KHL