TMTPOST -- U.S. President Donald Trump on Monday expressed openness to trade talks as the European Union is gearing up its new batch of countermeasure over Trump ’ s recent threat of higher tariffs.
Trump insisted the letter sending to trading partners including the EU are "the deals" but implied he ’ s open to more trade negotiations. "The letters are the deals. The deals are made. There are no deals to make," Trump said at the White House on Monday. He then added the the EU "would like to do a different kind of deal. We ’ re always open to talk. We are open to talk, including to Europe. In fact, they ’ re coming over. They ’ d like to talk."
Trump on Saturday released his letter to Ursula von der Leyen, president of the European Commission, indicating new tariffs on the EU exports starting August 1. "The United States of America has agreed to continue working with the European Union, despite having one of our largest Trade Deficits with you. Nevertheless, we have decided to move forward, but only with more balanced and fair TRADE," Trump wrote in the letter, according to screenshots he posted on his social media platform Truth Social.
Trump in the letter blasted the EU for its tariff and non-tariff barriers, which he blamed for causing "long-term, large, and persistent Trade Deficits." "Our relationship has been, unfortunately, far from reciprocal," he wrote. He also sent letter informing Mexco of 30% tariffs starting August 1. Just like letters Trump sent to leaders of more than 20 countries, the president said the new tariffs would separate from sectoral tariffs, warning them not to retaliate, urging them to relocate companies to the United States, and suggesting that the tariff rates could be adjusted if they cooperate.
Von der Leyen on Saturday pledged that the EU would respond with countermeasures if necessary. "Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers, and patients on both sides of the Atlantic," von der Leyen said in a statement.
Von der Leyen said the EU remained ready to continue working towards an agreement by August 1, while vowing "all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required."
EU trade minister agreed on Monday that Trump ’ s new threat of 30% tariffs was "absolutely unacceptable" after a meeting in Brussels. The EU ’ s trade representative and trade chief Maros Sefcovic said it was "very obvious from the discussions today, the 30% is absolutely unacceptable." Danish Foreign Minister Lars Lokke Rasmussen also condemned the new tariffs as "absolutely unacceptable" during a joint press conference with Sefcovic.
Sefcovic said the EU wants to strike an agreement with the U.S. though it gets ready for other outcomes. "I ’ m absolutely 100 percent sure that a negotiated solution is much better than the tension which we might have after August 1," he told reporters in Belgium. But he added the agreement has to be mutually acceptable for both sides and "we must be prepared for all outcomes, including, if necessary, well-considered proportionate measures to restore balance in our transatlantic relationship."
The EU has been quite close in agreeing the text on the trade agreement in principle, though "there have been clearly areas where we have quite a big gap" between both sides, Sefcovic said.
Sefcovic also said the European Commission was sharing proposals with the 27 member states for the second list of goods accounting of some 72 billion euros ( $84 billion ) worth of U.S imports. "They will now have a chance to discuss it. This does not exhaust our toolbox and every instrument remains on the table," he said.
The EU has finalized a second list of countermeasures to target American goods worth 72 billion, or $84 billion, including Boeing Co. aircraft, automobiles, bourbon, machinery products, chemicals and plastics, medical devices, electrical equipment, wines and other agricultural goods if it decides to retaliate against new U.S. tariffs, Bloomberg later Monday cited a 206-page list prepared by the European Commission.
The EU list, initially hitting U.S. goods totaling 95 billion, was scaled down after consultations with companies and member states. It was reported that the new list of targeted US products includes more than 65 billion of industrial goods, including mostly aircraft ( nearly 11 billion ) , machinery ( more than 9.4 billion ) and cars ( nearly 8 billion ) . More than 6 billion of US goods hit are agrifood products, mostly fruits and vegetables ( nearly 2 billion ) and alcoholic drinks ( 1.2 billion ) .
The broad package also reportedly includes precision equipment and instruments ( nearly 5 billion ) , toys and hobby equipment ( more than 500 million ) , sports guns ( nearly 300 million ) or musical instruments ( around 200 million ) .
