EU seeks trade deal based on respect after Trump escalates tariff threats

The European Union’s trade chief has emphasized the bloc’s commitment to securing a trade deal with the United States based on “mutual respect” rather than threats, following dramatic escalation by President Donald Trump in their ongoing trade standoff.

Trump significantly raised the stakes yesterday by threatening to impose a 50% tariff on EU goods, complaining that negotiations with Brussels were “going nowhere.” The threat represents a massive increase from Washington’s current baseline levy of 10% on European imports.

Diplomatic Response from Brussels

EU Trade Commissioner Maros Šefčovič responded to Trump’s ultimatum following a previously scheduled call with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick yesterday.

“The EU’s fully engaged, committed to securing a deal that works for both,” Šefčovič posted on X after the discussions. “EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests.”

Despite the heated rhetoric from Washington, the trade commissioner stressed that the European Commission remains committed to finding a solution. “We remain ready to work in good faith” towards a deal, he emphasized.

Escalating Transatlantic Tensions

The threatened tariff increase would dramatically intensify tensions between the world’s largest economy and its biggest trading bloc. The months-long transatlantic trade standoff has seen both sides preparing defensive measures while attempting to negotiate a resolution.

The European Commission, which conducts trade policy on behalf of all 27 EU member states, has previously indicated it would implement countermeasures if faced with punitive US tariffs.

Trump’s 50% tariff threat represents one of the most aggressive trade moves in the ongoing dispute, significantly exceeding his earlier proposals and suggesting growing frustration with the pace of negotiations.

The standoff reflects broader tensions over trade imbalances, regulatory differences, and competing economic priorities between the two major trading partners. Both the US and EU have substantial economic stakes in maintaining their trade relationship while protecting their respective domestic interests.

Šefčovič’s emphasis on “mutual respect” signals the EU’s position that successful trade negotiations require diplomatic engagement rather than ultimatums, setting up a potential test of whether economic diplomacy can prevail over escalating trade threats.

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