EU calls for an American trade agreement based on ‘respect’ after Trump’s tariff threats

The trader leader of the European Union said that the 27-person block is dedicated to concluding a trade agreement with the US based on “respect” not “threats”.

It comes after US President Donald Trump threatened to hit a 50% rate on all goods sent from the EU to the United States.

“The fully involved EU of the EU, dedicated to closing a deal that works for both,” said EU trading commissioner Maros Sefcovic after a phone call with the American trade representative Jamieson Greer and commercial secretary Howard Lutnick.

“EU-us trade is unparalleled and must be led by mutual respect, no threats. We are ready to defend our interests.”

Earlier on Friday, Trump expressed impatience with the pace of current EU-US Handel Negotiations, and said that his plan to increase rates was set on 1 June.

Trump posts on his social platform of truth: “Our discussions with them (the EU) are not going anywhere”, adding that there would be no rates for products built or manufactured in the US.

“I am not looking for a deal – we closed the deal,” he told reporters later, before adding immediately that a large investment in the US by a European company will open him to a delay.

The EU is one of the largest trading partners in the Washington and sends more than $ 600 billion (€ 528 billion; £ 443 billion) in goods and buying $ 370 billion last year, according to figures from the US government.

Responding to Trump’s threats, European governments have warned that higher rates would be harmful to both parties.

“We don’t have to go on this road. Negotiations are the best and only sustainable way forward,” said Taoiseach (Premier) Micheál Martin van Ireland.

“We maintain the same line: de-escalation, but we are ready to respond,” said the French Foreign Minister Laurent Saint-Martin.

Minister of German economy Katherina Reiche said that “we have to do everything to ensure that the European Commission reaches a negotiated solution with the United States”.

Dutch Prime Minister Dick Schoof said reporters that he supported the EU strategy in trade discussions and “we have previously seen that rates can go up and down in conversations with the US”.

Last month, Trump announced a rate of 20% on most EU goods, but had halved it up to 10% until 8 July to give time for more negotiations.

Trump’s complaints about Europe have focused on its unequal trade relationship, because the EU sells more goods to the US than it buys from America.

He blames this trade deficit on policy that he says it is unfair for American companies, and he has specifically expressed concern about policy with regard to cars and agricultural products.

Trump also warned Apple that he would impose an import tax of 25% “at least” on iPhones that were not made in America, so that the threat was later widened for each smartphone.

Shares in the US and the EU fell on Friday after the last threats, with the S&P 500 by around 0.7% and the Dax of Germany and CAC 40 of France that ended the day with more than 1.5%.