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Commerce between the EU and US can be “nearly unattainable” if Donald Trump imposes the 30 per cent tariffs he has threatened, the bloc’s commerce commissioner has mentioned.
Maroš Šefčovič’s feedback forward of a gathering of EU commerce ministers on Monday got here after the US president warned over the weekend that he would impose duties at that stage on the EU from August 1.
“For those who’re speaking about 30 per cent or 30 per cent plus, there can be a big impact on commerce,” Šefčovič mentioned. “Will probably be nearly unattainable to proceed buying and selling as we’re used to in a transatlantic relationship.
“Transatlantic provide chains could be closely affected on each side of the Atlantic. Present me one trade chief who’s blissful about this tariff coverage,” he added.
Šefčovič will transient EU ministers at a gathering in Brussels on Monday on the state of talks with the US because the bloc considers potential retaliatory measures.
He instructed reporters forward of the assembly: “The sensation on our facet was that we’re very near an settlement.”
However Trump confounded Brussels — and a few EU officers say his personal negotiators — together with his letter containing the brand new tariff risk posted to his Fact Social platform on Saturday.
Trump’s so-called reciprocal tariffs had been initially set at 20 per cent in April, then dropped to 10 per cent to permit time for negotiations, earlier than the president introduced the most recent 30 per cent risk.
Šefčovič mentioned he would speak to US commerce secretary Howard Lutnick on Monday afternoon in a push for a deal.
However diplomats additionally count on him to suggest a brand new package deal of potential retaliatory tariffs in opposition to the US to EU member states. They may cowl about €72bn of annual US imports, two diplomats mentioned, after governments lobbied for some exemptions from an unique €95bn checklist.
The fee is delaying a separate plan to hit €21bn of annual US imports — drawn up in response to Trump’s separate duties on imports of metal, aluminium and vehicles from the EU — till mid-August to permit time for talks.
Šefčovič mentioned the imposition of 30 per cent reciprocal tariffs would imply the EU had nothing to lose if Trump escalated with even larger numbers in response.
“Thirty per cent or something above 30 per cent — any further counter-reaction from the US — it has kind of the identical impact. So virtually, it prohibits commerce,” he mentioned.
Bigger member states have been reluctant to strike again on the US for worry of upsetting Trump.
Friedrich Merz, the German chancellor, and Giorgia Meloni, the Italian premier, each talked up the prospects of a negotiated deal and warned in opposition to a commerce struggle on the weekend.
In his letter asserting the duties to European Fee president Ursula von der Leyen, Trump mentioned the US would enhance the tariffs past 30 per cent to match any retaliatory levies by the EU.
Lars Løkke Rasmussen, the international minister of Denmark, which holds the rotating presidency of the EU, mentioned the bloc was contemplating measures in opposition to companies.
He mentioned the EU must also think about using its strongest software, the anti-coercion instrument (ACI), dubbed a “commerce bazooka”. The ACI permits the EU’s govt arm to impose restrictions on commerce in companies if it determines {that a} nation is utilizing tariffs on items to drive adjustments in coverage.
“If you’d like peace, you must put together for struggle,” Rasmussen mentioned.
However von der Leyen mentioned on the weekend that it was not but time to make use of the ACI.
Šefčovič additionally mentioned on Monday that Brussels was consulting different “like-minded” buying and selling companions a few co-ordinated response, with out naming any international locations.
Trump has levied 10 per cent “reciprocal tariffs” on a lot of the world, together with 50 per cent nationwide safety tariffs on metal and aluminium and 25 per cent on autos and elements. To this point, solely the UK, Vietnam and China have agreed partial offers with Washington, with the latter two nonetheless locked into excessive tariffs.