The mood was sombre at talks in Luxembourg as stocks and oil prices sank further on what EU trade commissioner Maros Sefcovic called a “black day” for global markets.
At their first talks since Trump ordered 20 percent tariffs on the bloc’s imports last week, the trade ministers all agreed that Brussels must seek to avoid an all-out trade war through negotiations.
Faced with a US effort to “transform the global trading system” through tariffs, he suggested the EU could put remedies on the table but they may not be accepted by Trump.
Need for ‘de-escalation’
There is a lot at stake. He said Trump’s tariffs including those on steel, aluminium and cars meant 380 billion euros ($415 billion) worth of EU exports -- some 70 percent -- to the United States face levies of 20 percent or more.
The idea of targeting American tech titans such as Microsoft, Amazon, Google, and Meta has been raised but there is scant detail on exactly how the EU would do so.
The idea is not popular with Baltic states, heavily dependent on Washington for security.
France and Germany have, however, said the EU must be ready to respond firmly, with French Trade Minister Laurent Saint-Martin saying the bloc should “not exclude any option”.
He referred specifically to a new trade weapon -- nicknamed a “bazooka” but formally called the anti-coercion instrument -- which punishes any country using economic threats to exert pressure on the EU once diplomacy fails.
Germany has also said the EU should be prepared to use it.
The ministers also discussed EU-China trade relations, which will require careful handling as Brussels fears US tariffs will cause Chinese goods to flood into the bloc, but also wants to avoid further tensions with Beijing.
As he pushed for negotiations with the United States and trade deals with others, EU diplomats privately expressed little hope for a positive outcome with Trump.
“But what are the politicians supposed to say? ‘Prepare for the crash?’ I mean they have no idea what to do.”
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