EU flags flutter in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany on July 18, 2024.
Jana Rodenbusch | Reuters
European leaders gather on Monday to talk about how to finance huge investment in defense – but the latest moves of US President Donald Trump will hold the meeting bigger.
Over the weekend, Trump confirmed the upcoming tariffs on the goods from Mexico, Canada and China, on Tuesday. For now, European goods have been spared, but EU officials know that they could be next in line.
The US president was not shy in sharing his opinions on European trade practices. In fact, Trump told reporters overnight, “This will definitely happen to the European Unic.”
“I can tell you that they are because they really used us. And, you know, we have a $ 300 billion deficit. I wouldn’t say there is a time tape, but it will be pretty fast,” he added.
2023. The United States were the largest export market of the EU, according to European Statistics OfficeAlthough the block also imports significant quantities from the USA
While the EU sells mostly cars and pharmaceutical products in the US, it imports mostly oil and natural gas from USA
In the European Union, there is a consensus that one way to relieve trade tension with the US will increase the purchase of energy.
Speaking on the eve of the European leader’s meeting on Monday, an EU official, who did not want to be appointed because of the sensitive nature of relations with the US, said they expected the latest moves of Trump.
“I do not expect a certain discussion of tariffs, but the question is likely to start some leaders,” CNBC officer said on Sunday.
A solid answer
Meanwhile, the EU was preparing for potential tariffs from the United States and vowed to a “solid” response to all new duties.
“The European Union regrets the US decision to impose tariffs Canada, Mexico and China,” a spokesman for the European Commission for CNBC said on Sunday.
“The EU firmly believes that low tariffs are triggered by growth and economic stability in a strong, trade system based on the rules. However, the EU would firmly respond to any commercial partner who is unjust or arbitrarily imposing tariffs on EU goods,” they added.
Although Trump’s latest duties do not target the EU directly, officials in the block are aware of their indirect consequences.
The older diplomat, who did not want to be appointed for the sensitivity of the problem, told CNBC that there was a realization that the EU conflict trade was approaching.
“The EU can still negotiate, including the purchase of more LNG, but it will be very difficult (to avoid escalation),” said the older diplomat.