EU trade chief Maros Sefcovic heads to Washington for showdown talks as fears grow over US President Donald Trump's tariffs

Sky News AU

2 days ago

European Union trade chief Maros Sefcovic will hold showdown talks in Washington DC as fears mount over fresh tariffs announced by United States President Donald Trump.
President Trump has threatened to introduce new 30 per cent tariffs on the EU unless the 27-member bloc can reach a trade agreement with the US by August 1.
European leaders have condemned the move, saying it would all but end normal trade relations between two of the world's largest markets.
On Wednesday, local time, the EU confirmed Mr Sefcovic would head to Washington in order to discuss the threat with US Commerce Secretary Howard Lutnick and trade representative Jamieson Greer.
Should the talks fail, the EU has drawn up retaliatory measures worth €72 billion ($128 billion).
In a list distributed to member nations on Tuesday, the bloc said it would target a range of US products, including Boeing BA.N aircraft, bourbon whiskey and cars.
It also covers chemicals, medical devices, electrical and precision equipment as well as agriculture and food products - a range of fruits and vegetables, along with wine, beer and spirits.
The list pre-dated President Trump's latest effort to ramp up pressure on the EU and was originally formulated in response to earlier US duties on cars and car parts, as well as a 10 per cent baseline tariff on all imports.
It is possible the bloc may seek to add further measures should it fail to reach an agreement with the US before the additional tariffs come into force.
Speaking at a press conference alongside his French counterpart, German Finance Minister Lars Klingbeil warned "possible countermeasures must continue to be prepared" even as he insisted Europe hoped to negotiate a solution.
"Trump's tariffs have only losers," he said.
"Our hand remains extended, but we will not go along with everything, possible countermeasures must continue to be prepared."
Existing US measures, as well as market turmoil sparked by President Trump's chaotic approach to trade, have already hit European businesses hard.
Many companies are expected to report a 0.7 per cent drop in earnings and a three pre cent fall in revenue in the upcoming earnings season covering the second quarter, their weakest in more than a year.
Shares in European carmakers, who have been struggling to adjust to 25 per cent tariffs imposed by the US earlier this year, fell on Tuesday after Renault issued a profit warning to investors.
There are increasing concerns over the health of the car making industry in Europe, with some analysts warning failures could be on the horizon.
For his part, President Trump has remained unphased by the possibility of a trade war with the EU.
The President has maintained tariffs are necessary to address trade deficits and to prevent the US being taken advantage of.
He has also claimed measures targeting carmakers will help revitalise domestic manufacturing, an argument disputed by most economists.
With Reuters.