The EU adopts a "negotiation priority" strategy on Trump's tariffs: preferring talks over conflict, but preparing countermeasures.

In response to Trump once again stirring up trade protectionism, EU officials collectively advocate for a "calm response," leaning towards resolving the new round of tariff disputes with the United States through negotiations, even though a countermeasure list is already in preparation.

The EU focuses on negotiations, hoping to avoid an escalation of the trade war.

As former U.S. President Trump is expected to return to the White House, trade ministers from the 27 EU countries gathered in Luxembourg on Monday (April 7) to discuss the new tariff policies that the U.S. is about to implement. Although the EU is ready for the first wave of countermeasures, most member states still prefer to negotiate rather than confront directly.

Starting this Wednesday, the United States will impose a 25% tariff on imported steel, aluminum, and automobiles from Europe, and an additional 20% so-called "reciprocal tariffs" on most other goods. In the face of this potential trade war, the atmosphere within the European Union is tense, but the attitude is pragmatic.

Dutch Trade Minister Reinette Klever emphasized: "We should respond calmly to reduce tensions. The stock market's reaction has shown that once confrontations escalate, the losses will be more severe. But if necessary, we will also be prepared to counteract, forcing the U.S. side back to the negotiating table."

The EU proposed a "zero-tariff agreement," but the US responded coldly.

European Commission President Ursula von der Leyen stated that the EU is ready to negotiate with the United States and has proposed a "zero-for-zero" agreement on industrial goods as a solution. However, the progress of the negotiations is not optimistic.

EU Trade Commissioner Maros Sefcovic pointed out that he had a two-hour meeting with the U.S. side last week, stating that "the atmosphere was frank," but he clearly expressed to the U.S. side that these tariffs are "unreasonable and destructive."

The countermeasure list is out, with the first wave targeting 28 billion dollars worth of American goods.

Despite the priority of the negotiations, the EU is ready for the first wave of countermeasures, taxing up to $28 billion worth of U.S. imports, including dental floss, diamonds and other items, in response to steel and aluminum tariffs. However, the list does not yet include a response to "reciprocal tariffs".

Trump warned that if the EU imposes a 50% tariff on American bourbon whiskey, the U.S. will retaliate with tariffs of up to 200% on European alcoholic beverages, causing great concern for wine and spirits exporting giants like France and Italy.

A comprehensive counterattack is difficult, and the EU has limited leverage.

The EU is expected to announce a larger-scale countermeasure plan by the end of April, in response to U.S. automobile tariffs and "reciprocal tariffs." However, in terms of goods trade, Brussels has relatively limited room for retaliation. In 2024, the total value of U.S. imports of EU goods is 532 billion euros, while EU imports from the U.S. amount to only 334 billion euros.

Therefore, some officials are calling for the expansion of the front to the service industry and public procurement sector. French Trade Minister Laurent Saint-Martin proposed using the EU's "Anti-Coercion Instrument" (ACI) to restrict American companies' access to the European market.

He said, "We cannot rule out any options, whether they are products or services. ACI is a powerful tool that can be very aggressive."

"Nuclear options" have sparked divisions, with small countries calling for restraint.

However, opinions vary among countries on whether to implement ACI. Irish Foreign Minister Simon Harris stated directly: "ACI is a very extreme option, and I believe most EU countries are currently unwilling to use it."

German Economic Minister Robert Habeck pointed out that as long as the EU can stay united, it will be in a favorable position. He said: "The stock market has already seen a decline, and the losses could be even greater... The United States is actually at a disadvantage." He also mentioned that American entrepreneur Elon Musk recently expressed support for the elimination of all tariffs between Europe and the United States, which reflects the pressure from the U.S. side.

But he also reminded that if the EU countries only focus on their own industrial interests, such as red wine, whiskey, and pistachios, competing for exemptions on these small items, in the end, they will be able to "do nothing."

Faced with the pressure of Trump's tariff policy, the EU has chosen negotiation as its primary course of action, but does not rule out the possibility of launching a counterattack. This transatlantic trade struggle may have only just begun.

This article discusses the EU's "negotiation priority" strategy regarding Trump's tariffs: better to negotiate than to fight, but prepare countermeasures. It first appeared on Chain News ABMedia.