The Finance Minister stated today that his preference was for “no tariffs” between the European Union (EU) and the United States, just one day before the informal deadline for an agreement between the two blocs to avoid additional U.S. tariffs.
“If you ask me what my wish would be, it is that there are no tariffs. I am not participating in the negotiation, nor is any other finance minister [as] the negotiation is being conducted by the European Commission,” said Joaquim Miranda Sarmento.
Speaking at the end of the Ecofin meeting in Brussels, a day before the informal deadline set by the United States to conclude a trade agreement with the EU and prevent the imposition of punitive tariffs ranging from 20% to 50% on European products, the Minister refrained from commenting on potential tariffs of 10% for some products and smaller measures for others, which are under consideration.
“I do not know the terms of the negotiation or how the negotiation is progressing. From our perspective, what we have always advocated […] is that the imposition of tariffs is bad economic policy, which will harm economies and, above all, low-income consumers,” he stated.
Joaquim Miranda Sarmento acknowledged that the “negotiations are quite difficult,” but expressed confidence that “the Commission is trying to defend Europe’s best interests.”
When asked about a possible extension of the deadline from Wednesday to early August, the Portuguese minister in charge added, “Uncertainty is very damaging to economic agents and, therefore, anything that can eliminate uncertainty, reaching an agreement and allowing economic agents to know what they can count on, is positive.”
The trade tensions between Brussels and Washington are due to President Donald Trump’s announcements of imposing tariffs of 25% on steel, aluminum, and European automobiles, and reciprocal tariffs of 20% to 50% on the EU, which have been temporarily suspended for 90 days.
The European Commission, which holds the competence of the EU’s trade policy, has opted for prudence, a stance supported by countries like Portugal.
Brussels seeks to negotiate with Washington, having already proposed zero tariffs on industrial goods in trade between both 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 U.S. administration took office last January.
According to the European Commission, the situation involves an average level of U.S. customs duties higher than in the 1930s.
The EU and the United States have the largest trade volume between partners, amounting to 1.5 trillion euros.
