EU finance ministers urge caution amid Trump tariff threats and trade tensions

The EU’s 27 concern ministers person truthful acold reacted cautiously to US President Donald Trump’s menace to enforce 25% tariffs connected EU cars.

Meeting for an Economic and Financial Affairs Council successful Brussels connected Monday and Tuesday, the ministers said they would adhere to the model agreed with the US successful July 2025, which limits US tariffs connected EU goods to 15%.

The EU-US commercialized woody signed by Trump and European Commission President Ursula von der Leyen is presently being negotiated by EU governments and MEPs up of its implementation, with the bloc committed to removing tariffs connected US concern goods.

"We person a woody and that woody is being negotiated [...] we are consenting to support connected with this woody successful bully faith, and we anticipation everyone is successful the aforesaid framework of mind," French Finance Minister Roland Lescure told journalists up of the gathering connected Monday.

Lescure and others echoed Ursula von der Leyen’s stance, who earlier connected Tuesday said the instauration would “remain precise calm.”

"A woody is simply a deal, and we person a deal. And the essence of this woody is prosperity, communal rules and reliability," European Commission President Ursula von der Leyen said connected Tuesday.

"We privation from this enactment (to achieve) communal gain, practice and reliability. And we're prepared for each scenario," she added.

Avoid escalation

Trump's menace to enforce 25% tariffs connected EU cars came past Friday aft German Chancellor Friedrich Merz criticised the US warfare successful Iran. Washington besides announced the withdrawal of 5,000 US troops from Germany, further straining transatlantic relations.

German Vice-Chancellor Lars Klingbeil said connected Monday that Berlin wanted to debar “escalation” but was prepared if tensions intensified.

“We privation to person a communal way with the US. But of course, it is wide that we are besides prepared,” Klingbeil said.

The Commission besides said that options stay "open" connected the European broadside if the US threats are carried out. Last year, the EU suspended a bundle targeting €95 cardinal worthy of US products, aft weeks of commercialized disputes with the US.

The enactment of deploying the bloc’s anti-coercion instrumentality was besides repeatedly raised successful 2025. The mechanics allows the EU to retaliate against economical unit from 3rd countries by restricting licences oregon intelligence spot rights, alongside accepted commercialized defence measures.

Spanish Economy Minister Carlos Cuerpo, for his part, was reluctant to respond, viewing it arsenic conscionable different societal media station from the US President.

"With respect to this play quality of 25% for cars oregon trucks, determination is nary measure, nary circumstantial enforcement order. Therefore, determination would beryllium thing caller beyond that of the tweet or, successful this case, of that intention," helium said.

European Commissioner for Trade Maroš Šefčovič is scheduled to conscionable US Trade Representative Jamieson Greer connected Tuesday to effort to easiness tensions with Washington up of a G7 commercialized ministers meeting.

Lescure and French commercialized Nicolas Forissier are besides expected to speech with their US counterparts the aforesaid day.