In a statement on Tuesday, European Trade Commissioner Maros Sefcovic outlined the European Union's plans to prepare countermeasures in response to the series of tariffs imposed by the United States on EU imports. The EU has emphasized its preference for a negotiated solution to resolve the issue, but it is also preparing for further action if talks do not yield positive results.

Sefcovic pointed out that US tariffs now impact 70% of EU goods exported to the United States. This percentage is expected to increase significantly to 97% after additional US investigations targeting pharmaceuticals, semiconductors, and other goods. He highlighted the EU's readiness to take action in the event that the ongoing negotiations with the United States do not lead to a satisfactory resolution.

Ongoing Trade Tensions and Tariff Impacts

The European Union is currently facing tariffs of up to 25% on steel and aluminum, and additional tariffs on cars, which are expected to increase. Along with these, there are reciprocal tariffs on nearly all other goods, which may rise from 10% to 20% following a 90-day pause granted by President Donald Trump.

During a debate in the European Parliament, Sefcovic reiterated the EU's preference for a negotiated settlement with the United States, emphasizing that the EU seeks to reach a fair and balanced solution. However, if these discussions do not progress, the EU will continue to prepare its countermeasures.

EU Task Force and Trade Diversion Concerns

Sefcovic also discussed the EU’s efforts to monitor potential trade diversions caused by the US tariffs. As countries attempt to sidestep US tariffs by redirecting their products to the European market, the EU has established a task force that will begin monitoring these trade shifts. The task force will report its findings in mid-May, helping the EU prepare for the potential surge in imports of goods diverted from the US due to the tariffs.

This task force will allow the EU to act quickly if necessary, ensuring that European businesses are not unfairly affected by the shifting trade patterns. The EU is keen on preventing any negative impact on its own market while maintaining a stance of fair trade with the United States.

Future Developments and EU’s Position Moving Forward

Looking ahead, the EU will utilize the pause in tariffs until July 8 to prepare its next steps. Sefcovic confirmed that all options are on the table for the European Union, including imposing additional tariffs or other countermeasures to balance the trade relationships with the United States. However, the EU remains hopeful that negotiations with the US will continue and lead to a fair resolution that benefits both parties.

The European Union’s response to the US tariffs demonstrates the bloc's determination to protect its interests while remaining open to constructive dialogue. The EU's clear preference remains for a negotiated settlement, but it is also gearing up for further actions if the situation does not improve.

As US tariffs continue to shape the landscape of international trade, Sefcovic’s statements indicate the EU's preparedness for all possible outcomes, aiming for a solution that maintains a level playing field for its industries.

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