Brussels, May 2: The European Union stated on Saturday that it will keep “all options open” to protect its interests if the United States takes steps contrary to their shared trade agreement. This response follows a warning from US President Donald Trump about increasing tariffs by 25% on cars and trucks imported from the EU.
A spokesperson for the European Commission told the Xinhua news agency, “We are fully committed to a stable and mutually beneficial transatlantic relationship. However, if the US does not adhere to the joint statement, we will keep all options open to protect our interests.”
The spokesperson clarified that the EU is implementing its commitments under last year’s agreement according to standard legislative procedures, while continuously informing the US administration. Additionally, Brussels is seeking clarity from Washington regarding its commitments under the agreement.
According to the EU-US trade agreement established last year, the EU agreed to suspend tariffs on US industrial products and implement tariff-rate quotas for agricultural products. In return, the US promised to impose a 15% import duty on most European products.
Meanwhile, Trump announced on Friday that he has raised tariffs on cars and trucks from the EU to 25%. He accused the EU of not complying with the existing trade agreement.
Before departing from Marine One, Trump stated, “We have increased tariffs on cars from the EU because they were not adhering to our trade agreement. This will bring billions of dollars to the US and compel companies to move their production back to America more rapidly.”
Trump also mentioned that this move aims to encourage global automakers to increase their investments in the US. He claimed that over $100 billion in auto plants are currently under construction in the US, marking a record high, with investments coming from Japan, South Korea, Canada, and Mexico.
This tariff increase is viewed as a new escalation in trade tensions between the US and the EU, particularly in the auto sector, which has long been a point of contention between the two sides. Experts believe that if this dispute escalates, it could impact global supply chains and economic stability.
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