The European Union hopes to avert a damaging trade war with the U.S. over impending metals tariffs by prioritising negotiations rather than retaliatory countermeasures, comments from officials signaled on Wednesday.
Ministers responsible for trade from the bloc’s 27 members were due to meet for a video conference on Wednesday to discuss the EU response to U.S. President Donald Trump imposing 25% tariffs on all steel and aluminium imports from March 12.
European Commission President Ursula von der Leyen has called those tariffs unjustified and said they would “trigger firm and proportionate countermeasures”.
One EU diplomat said it was time to be “cool-headed,” with a month still to go before the tariffs take effect. EU trade chief Maros Sefcovic had a first call on Wednesday with U.S. counterparts – Commerce Secretary nominee Howard Lutnick, U.S. Trade Representative nominee Jamieson Greer and National Economic Council director Kevin Hassett.
“Cooperation is our preferred option. So, we remain committed to constructive dialogue and finding negotiated solutions, while protecting the EU interests – the same way the US is protecting theirs,” an EU spokesperson said, adding the parties had agreed to meet soon.
Carlos Cuerpo, Spain’s trade minister, told journalists in Poland on Wednesday that a general agreement on tariffs was needed.
“For that reason, we will continue with the dialogue,” he said.
German Economy Minister Robert was set to emphasise on the video conference the need to prevent a trade dispute and for the EU to show a united front.
“It remains important for the European Commission to hold talks with the U.S. administration in order to reach a solution regarding the tariffs,” Habeck’s ministry said.
“At the same time, it must make it clear – and the Commission has already announced this – that it has prepared countermeasures,” it continued.
The Commission has not given detail of its measures. One option would be to reactivate the tariffs the EU imposed in 2018 on products such as bourbon, motorcycles and orange juice. These were suspended under a truce agreed between von der Leyen and former U.S. President Joe Biden.
A European industry source said they expected the EU to make clear it was ready to retaliate but continue negotiations to broker a truce before any U.S. levies kick in.
The European Union is not the United States’ largest supplier of steel and aluminium, but exports are substantial.
The United States is the second-largest export market for EU steel, with annual shipments worth an average of about 3 billion euros ($3.10 billion) over the past decade. EU aluminium exports were worth 2.4 billion euros in the first 11 months of 2024.
Lobby group European Aluminium urged the European Commission to engage in immediate talks with U.S. counterparts to seek a resolution.