“I have stated […] that it is necessary to negotiate, that it is necessary to sit at the table with the American administration, that there is a negotiation process underway and that Europe must look at its interests, but seek to reach an understanding so that tariffs are not applied or that […] they are as mitigated as possible,” declared the Minister of Finance, Joaquim Miranda Sarmento, in Brussels.
The statement, made upon arrival at the Eurogroup meeting, coincides with the announcement that the United States and China will suspend most tariffs for 90 days.
“Tariffs harm economies and, above all, harm low-income consumers. Therefore, both Europe and other economic blocs are doing their work to sit with the American administration and understand what can be achieved in this tariff negotiation issue,” added Joaquim Miranda Sarmento.
The reaction follows the United States’ announcement of a 30% reduction in tariffs imposed on China for 90 days, with Beijing reducing its rates on American products from 125% to 10%, a move welcomed by the European Commission.
“We welcome the fact that the United States and China have announced that, at least to some extent, they will roll back the imposition of tariffs for 90 days,” said Olof Gill, the spokesperson for the European Commission on Trade, also in Brussels.
Previously, last Thursday, the European Commission proposed a list of US industrial and agricultural goods worth 95 billion euros for taxation if negotiations with Washington fail, while also preparing a dispute in the World Trade Organization.
Regarding this issue, Joaquim Miranda Sarmento stated, “The Commission continues to do its work, and there is a negotiation period, where naturally there are advances and retreats, as is normal in these processes.”
This marks a moment of trade tensions following Donald Trump’s announcements of imposing 25% tariffs on European steel, aluminum, and cars, and reciprocal community bloc tariffs of 20%, which were subsequently suspended for 90 days.
The suspension alleviated markets that had experienced significant losses, welcomed and mirrored by the EU, which also suspended for the same period, until mid-July, the 25% tariffs on American products in response to those applied by the United States on European steel and aluminum.
The European Commission, responsible for EU trade policy, has opted for caution, a strategy supported by countries such as Portugal.
Brussels aims to use this 90-day pause to negotiate with Washington, having already proposed zero tariffs for industrial goods traded between the two blocs.
Currently, 379 billion euros in EU exports to the United States, equivalent to 70% of the total, are subject to the new tariffs (including those temporarily suspended) since the new American administration took office.
Calculations by the European Commission indicate that the new US customs duties could result in losses of 0.8% to 1.4% of the US GDP by 2027, with this percentage being 0.2% of the GDP in the case of the EU.
In the worst-case scenario, where tariffs become permanent or other countermeasures occur, the economic consequences will be more negative, ranging from 3.1% to 3.3% for the United States and 0.5% to 0.6% for the EU.
Globally, the European Commission forecasts a 1.2% reduction in world GDP and a 7.7% drop in world trade over three years.
