US, EU Officials Explore How to Move Forward in Trump’s Trade War

Senior members of the European Union’s executive arm and US officials spoke on Friday to explore ways to move forward after US President Donald Trump’s metals tariffs prompted a trade war.

EU trade chief Maros Sefcovic spoke with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to improve the understanding of each other’s position, the European official said.

“There’s a lot of work ahead but let’s stay focused and explore the best ways to move forward in the right direction,” Sefcovic said in a social media post.

Sefcovic’s call with his American counterparts came after Trump imposed 25% tariffs on steel and aluminum imports in a massive escalation of the trade war between the longstanding allies. The decision was shortly followed by the announcement of the European Commission, the EU’s executive arm, for additional tariffs targeting as much as €26 billion of US products.

While EU officials had hoped to enter into negotiations with the US following the implementation of the metal duties, Trump further escalated tensions by threatening to impose a 200% tariff on wine, champagne and other alcoholic beverages from the EU unless Brussels removes the announced tariffs, most of them expected to enter into force in mid-April.

In addition, EU officials are preparing additional measures to response to another round of US so-called reciprocal tariffs in just three weeks. Trump officials plan to apply an across-the-board rate to each country, based on a calculation of their own tariffs and other trade barriers, such as digital taxes or value-added levies. 

Trump has also pledged separate sectoral tariffs on industries including autos, lumber, semiconductors, pharmaceuticals and copper.

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