European Union flags flutter in front of the European Central Bank headquarters (ECB) in Frankfurt, Germany July 18, 2024.
Jana Rhodbush Reuters
European leaders gather on Monday to discuss how to finance huge investments in defense – but the last movements by US President Donald Trump will turn on the horizon during the meeting.
During the weekend, Trump confirmed the upcoming definitions of goods from Mexico, Canada and China, due to kicking on Tuesday. Currently, European goods have been rescued, but European Union officials know that they may be in queue.
The US President was not shy in sharing his views on commercial practices in Europe. In fact, overnight, Trump told reporters: “It will definitely happen with the European Union.”
“I can tell you that, because they have truly benefited from us. As you know, we have a deficit of more than $ 300 billion. I will not say that there is a schedule but it will be very soon,” he added.
In 2023, the United States was the largest export market in the European Union, according to European Statistics OfficeAlthough the bloc also imports large sums from the United States
While the European Union sells most cars and pharmaceutical products to the United States, most of which import oil and natural gas from the United States
There is a consensus in the European Union that one of the ways to reduce trade tensions with the United States will be by increasing energy purchases.
Speaking before the European Union leaders meeting on Monday, a European Union official, who did not want to obtain his name because of the exact nature of the relationship with the United States, said they expect Trump's recent movements.
“I don't expect a specific discussion about the definitions, but some leaders are likely to raise the case,” CNBC official said on Sunday.
The company's response
Meanwhile, the European Union was preparing for the potential definitions of the United States and pledged to respond to the “company” to any new duties.
“The European Union regrets the US decision to impose a tariff on Canada, Mexico and China,” CNBC spokesman said on Sunday.
“The European Union believes a firm belief that low definitions drive economic growth and stability within a strong trading system based on bases. However, the European Union will respond firmly to any commercial partner that imposes an unfair or arbitrary tariff on the European Union commodities,” they added.
Although Trump's recent duties are not directly targeting the European Union, the bloc officials are aware of their indirect consequences.
The senior diplomats, who did not want his name due to the sensitivity of the case, told CNBC that the realization of the commercial confrontation with the European Union is approaching.
“The European Union can still negotiate, including by buying more LNG, but it will be very difficult (to avoid escalation),” said a senior diplomat.
