Benjamin Dousa, the Minister of Foreign Trade in Sweden, expressed considerable concern on Monday about the US’s latest move to enforce new tariffs on the European Union. This move has instigated speculations around a potential full-scale trade conflict. Benjamin Dousa vocalized his disagreement ahead of a crucial discussion scheduled among EU trade ministers in Brussels. The proposed 30% tariff, as announced by the US on EU goods beginning from August 1, was deemed by Dousa as ‘disappointing, intolerable, and astonishing’.
Dousa lamented, in an interview with the Swedish media outlet SVT, that US authorities had continually escalated tensions on multiple fronts, raising the possibility of a trade war. ‘At this point’, Dousa stated, ‘it seems more than likely that the US will force us into a commerce skirmish’. The EU had initially planned to address the escalating trade tensions through diplomatic negotiations, as revealed by Dousa. He noted that the EU-US discussions were on the brink of reaching an initial consensus.
According to Dousa, the unrealistic 30% tariff imposition is something that Europe cannot possibly comply with. The EU has consistently strived for a negotiated solution that can be cooperatively agreed upon. However, in Dousa’s words, ‘the White House still adopted this approach, and it is regrettable’. He highlighted the volatility of the situation with the White House frequently sending out mixed signals from hour to hour and day to day, necessitating a preparation for the worst potential scenario.
Dousa stressed on EU’s non-retaliatory stance so far, stating that the bloc has acted ‘completely by the rules of the game’. Following the decision by the United States, Dousa indicated the EU’s planned course of action, revealing that the EU is considering its next steps. He spoke about the EU’s proactive measures: ‘We have already approved a countermeasure package amounting to 20 billion euros, and concurrently we are putting together a 70 billion euro package’.
The Minister also highlighted the EU’s plan to venture into alternative trade alliances as part of a more extensive strategy. He said, ‘At the meeting today, we will broach the subject of inaugurating new markets via free-trade agreements. Some potential partners include South America, India, and Indonesia’. This move represents the EU’s attempt to diversify and strengthen its trade connections amidst rising tensions with the United States.
Over the weekend, US president Donald Trump declared their decision to enforce a 30% tariff on EU as well as Mexico, commencing the 1st of August. This unwelcome news cast a great deal of uncertainty over the ongoing EU-US trade negotiations, as both parties had been aiming to secure an all-encompassing trade agreement within the month.
Upon receipt of the news, Ursula von der Leyen, the President of the European Commission, showed determination to attain a negotiated resolution with the US by the 1st of August. She asserted that the EU would take necessary measures to secure its interests, indicating the inclusion of appropriate retaliatory actions if required.