EU: Hopes that trade war will be avoided through negotiations with Donald Trump

The (EU) is preparing for a transatlantic trade war, but the US President’s decision to delay the imposition of large tariffs on Mexico and Canada this week has strengthened confidence in the Union that it will be able to negotiate an acceptable result. Trump’s folding on the American continent has led to the strategy of the European Commission, the EU executive arm responsible for trade issues, preparing a similar response to the president’s tariff threats, so as not to cause Washington’s anger and the outbreak of a trade war, according to Bloomberg sources. CORVERSE But one important obstacle to the EU strategy is that it has failed to create good contacts with the incubating American government. Some key positions for trade in Washington are still awaiting Senate approval. The EU will also try to defuse an emerging conflict with the US on steel and aluminium exports to culminate next month. Trump sharpened his rhetoric aimed at the EU this week, saying that tariffs would “take place for sure”, citing the major trade deficit with the bloc. Bloomberg has that the Commission has prepared extensive lists of reprisals in case the US proceeds to the threat. “When targeted, unfairly and arbitrarily, the European Union will respond decisively,” Commission President Ursula von der Leien told reporters after a meeting of EU leaders in Brussels on Monday (04.01.2025)”. It is unclear what Trump wants from the EU and his anger towards Europe goes far back, so it could be harder to achieve. The Commission plans to follow a model similar to its last trade conflict with the US in 2018 and target politically sensitive regions in the US for tariffs, American media sources said. At a trade ministers meeting in Warsaw on Tuesday, the Commission shared a few ideas with the Member States about the retaliation package.