EU plans dual approach for potential Trump presidency Trade deals or retaliatory tariffs

The European Union is preparing a two-pronged strategy to manage potential trade relations with the United States, contingent on the outcome of the upcoming US presidential election.

This plan includes offering a quick trade deal to Donald Trump if he secures a second term, or imposing targeted retaliation should he enact punitive tariffs, as part of his proposed 10% minimum tariff on imports, Caliber.Az reports, citing foreign media.

EU officials are concerned about the economic impact of such tariffs, estimating a potential reduction of around €150 billion annually in EU exports to the US. As a preemptive measure, they are planning to initiate discussions with Trump's team, should he win, before he takes office. These discussions would explore which American products the EU could potentially purchase in larger quantities, aiming to present the EU as a constructive partner rather than an adversary.

A senior EU official emphasized the bloc's commitment to cooperation but also highlighted their readiness to defend EU interests. "We have to show we are a partner for the US, not a problem. We will look for deals, but we are ready to defend ourselves if it comes to it. We won’t be guided by fear," the official stated.

The EU's trade department is also preparing contingency plans involving significant tariffs of 50% or more on specific US imports if talks fail and Trump implements his proposed tariffs. This strategy echoes the EU's response during Trump's first term, when the administration imposed tariffs on €6.4 billion of EU steel and aluminium under national security pretenses. In retaliation, the EU implemented rebalancing tariffs worth €2.8 billion.