Tariff war: European ministers seek response to Trump in Brussels this Monday

The US president's decision has cast a chill as trade negotiations between Brussels and Washington continue. The president of the European Commission, which negotiates on behalf of EU member states, Ursula von der Leyen, prefers to turn a blind eye. She announced on Sunday that the European Union would not retaliate for the time being against US tariffs on steel and aluminum, in the hope of reaching a less painful agreement.

"We have always been very clear that we prefer a negotiated solution. This remains the case and we will use the time we have now until 1 August," said Ms von der Leyen.

"We prefer a negotiated solution."

Negotiations are therefore expected to continue. Diplomats have nevertheless stressed that a package of additional retaliatory measures will be presented to ministers on Monday, measures that could be implemented if Donald Trump does indeed opt for 30% tariffs on imports from the European Union.

The EU already threatened in May to impose tariffs on US products worth around €100 billion, including cars and aircraft, if talks failed - even though one diplomat suggested the final list had been reduced to €72 billion.

European countries are trying to remain united in this matter, even though their economies are not equally exposed to the US president's customs wrath. Emmanuel Macron urged the European Commission on Saturday to "resolutely defend European interests" and "accelerate the preparation of credible countermeasures."

German Chancellor Friedrich Merz agreed with the French president on Sunday, adding that he had spoken with him, Ms. von der Leyen, and Donald Trump in recent days. He said he wanted to be "intensively" involved in trying to find a solution.

Italian Prime Minister Giorgia Meloni warned on Sunday of the prospect of a "trade war" within the Western world.

"Europe has the economic and financial power to assert its position and reach a fair and common-sense agreement. Italy will do its part. As always," she said in a statement, while her opposition accuses her of lacking firmness in the face of Washington.

Steel and aluminum

Since returning to the US presidency in January, Donald Trump has imposed fluctuating and widespread tariffs on his allies and competitors, unsettling financial markets and fueling fears of a global economic slowdown. But his administration is under pressure to strike deals with trading partners after promising a series of arrangements.

So far, US officials have unveiled only two agreements, with the UK and Vietnam, as well as a temporary tariff reduction with China. The EU, like dozens of other economies, was due to see its US tariffs increase from a base rate of 10% on July 9, but Mr. Trump extended the deadline to August 1.

In his letter to Brussels, made public on Saturday, Mr. Trump cited the size of the US trade deficit with the EU to justify his new 30% tariffs. This rate is significantly higher than the 20% the American president unveiled in April, before backtracking when stock markets collapsed.