The penalizing European exports, especially through the imposition of tariffs as threatened by Washington, is something the European Union (EU) has spoken out against with fury. Maros Sefcovic, the European Union’s trade representative, denounced the idea as “absolutely unacceptable.” And united, the EU—made up of 27 member states—is today the largest commercial partner of the United States.
The tension escalated after reports indicated that the U.S. may impose a 30 percent tariff on various imports from the EU. In return, Sefcovic reiterated the value of negotiations and claimed that an imposed solution would only lead to increased tensions. He stated, “I’m absolutely 100 percent sure that a negotiated solution is much better than the tension which we might have after August 1.”
And indeed, Denmark’s Foreign Minister Lars Lokke Rasmussen, whose country is currently holding the revolving EU presidency, agreed with Sefcovic. He doubled down on that, saying that any nationwide tariffs coming from Washington would be “absolutely unacceptable.” He referenced a feeling of seriousness and solidarity among EU member states in the EU’s defense against these threats.
“The EU remains ready to react and that includes robust and proportionate countermeasures if required and there was a strong feeling in the room of unity.” – Lars Lokke Rasmussen
In response to the escalating threat, the EU is #FacingTheStorm. In response, they have developed plans to retaliate against $24.5 billion of U.S. goods with tariffs in place if the tariffs are implemented. Friedrich Merz, the Chancellor of Germany, raised concerns about the potential impact of high U.S. duties, indicating they would “hit the German export industry to the core.”
The rapidly ratcheting trade war has already started impacting European markets. On Monday, European stock markets fell as investors adjusted to worsened uncertainty about U.S.-EU trade relations.
Sefcovic further solidified the EU’s position. He highlighted that the EU is committed to a positive solution with the U.S, but needs to be ready for all scenarios. The EU is still calling for dialogue and negotiation over confrontation, still reeling from hopes that these issues can be resolved without further escalation.
