The informal Eurogroup meeting, held in Warsaw under the Polish presidency of the EU Council, takes place amid heightened trade tensions following announcements by U.S. President Donald Trump of 25% tariffs on European steel, aluminum, and cars and 20% reciprocal tariffs on the EU bloc. These latter tariffs have been suspended for 90 days.
This suspension has calmed the markets, which were experiencing significant losses, and was welcomed and echoed by the EU, which for the same period, suspended 25% tariffs on American products it had approved Wednesday in response to U.S. tariffs on European steel and aluminum.
The Eurogroup discussion will focus this morning on the macroeconomic consequences of such tariffs, and during a lunchtime session with 27 member states, the community’s response will be analyzed.
The European Commission, which holds the competence for trade policy in the EU, has opted for prudence, supported by countries like Portugal.
Brussels aims, during this 90-day pause, to negotiate with Washington, having already proposed zero tariffs on industrial goods in trade between the two blocs.
The community executive still hopes to dissuade Donald Trump from proceeding with such tariffs, which could have significant consequences for community citizens and businesses and affect the transatlantic relationship.
Nonetheless, countries are preparing for the worst, and Portugal has devised a package of measures exceeding 10 billion euros for rapid support to exporting companies, including credit lines, credit insurance, and expanded internationalization support.
Although the main topic of the meeting in Poland is the community’s defense commitment, current international issues prevail as fears grow in the eurozone and the EU about the economic impacts of U.S. measures.
This fear of a tariff war arises at a time when an economic slowdown was already anticipated in the euro area and the Union this year, due to security risks related to the Ukraine war and geopolitical tensions, affecting investor and consumer confidence.
Portugal at the meeting will be represented by the Finance Minister, Joaquim Miranda Sarmento.
