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EU Urged to Engage With Trump Team on Trade as Soon as Possible

(Source: Eurostat)

(Bloomberg) -- Some European Union member states want the bloc to engage more urgently with Donald Trump’s transition team as they hope to stave off disruption and worsening tensions with its largest trading partner.

A number of member states told the EU’s executive arm Thursday that it should try to chart a positive agenda with Trump aides as soon as possible, even as it prepares potential retaliatory measures if the next administration pursues the tariffs he has threatened, according to EU diplomats.

EU trade ministers discussed Thursday how to prepare for the protectionist agenda that Trump has promised to deliver following his victory, including possible across-the-board tariffs between 10% and 20%. 

The EU is exploring whether there are some areas where cooperation with the US could be deepened, such as increased liquefied natural gas imports from the US, or a closer alignment with Washington to address China’s distortive trade practices.

But the commission is also drawing up a list of potential targets that it could hit in retaliation if Trump moves ahead with tariffs. 

“If we see certain new trade disputes or certain measures that are addressed against the European economy or European companies, we should be ready to react in a coordinated, precise and proportionate way,” said the EU’s trade chief, Valdis Dombrovskis.

During Thursday’s closed-door discussion, there was a strong consensus about the need to remain united in addressing the challenges posed by Trump, said EU diplomats, who were granted anonymity to discuss sensitive matters.

“The commission is already in touch with the Trump team, within the limits foreseen by the transition on the US side,” said Eric Mamer, the commission’s spokesperson. 

Poland, which will take over the EU’s rotating presidency in January, stressed the need for strong transatlantic relations, particularly when it comes to security.

“The EU needs to remain united, but it also needs to remain proactive to propose solutions to the US administration,” said Polish Deputy Minister of Development and Technology Ignacy Niemczycki.

--With assistance from Katharina Rosskopf.

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