Luxembourg, 7 April 2025
Europe’s trade relations with the United States
Ministers held a discussion on the EU’s trade relations with the US, providing guidance for the forthcoming work.
In light of the recent developments, particularly the (partial) imposition of US tariffs, the ministers took this opportunity to assess the impact of these new tariffs and explore the potential for negotiating mutually acceptable solutions, which remains the EU’s preferred approach.
Further to the EU’s response in relation to the US tariffs on steel and aluminium, which is currently under preparation, ministers also addressed the possibility of further proportionate countermeasures if needed.
The EU deeply regrets the new US tariffs and remains committed to dialogue, seeking a negotiated solution acceptable for both sides. Today’s Council shows the member states are united and determined to defend interests of citizens and businesses alike. We support the European Commission and our response will be guided by patience and firmness. All options remain on the table.
Michał Baranowski, Undersecretary of State at the Ministry of Economic Development and Technology of Poland, responsible for Trade
Looking ahead, the Commission and member states will carefully assess any potential new US measures, as well as the latest tariffs announced (a 20% tariff on the EU).
The aim is to ensure that the EU’s approach remains both balanced and effective, protecting our economic interests while keeping the door open for mutually advantageous solutions.
- EU relations with the United States (background information)
- EU-US trade: facts and figures (infographic)
- EU tariffs explained
Europe’s trade relations with China
The Council reviewed the current state and future outlook of EU-China trade relations.
Commissioner Šefčovič briefed ministers on the status of the EU’s trade ties with China following his visit to the country. He reported on his discussions with Vice Premier He Lifeng, Minister of Commerce Wang Wentao, and Minister of Customs Sun Meijung, focusing on how to improve and rebalance trade and investment relations between the EU and China.
China remains a key trading partner for the EU: it is the EU’s third-largest trading partner and the second-largest in terms of trade in goods. However, the growing trade imbalances continue to raise concerns.
The EU-China trade deficit for 2024 reached €304.5 billion; while this is an improvement compared to the 2022 figures (€397 billion), it nonetheless represents a record high in terms of volume. In 2024, Chinese foreign direct investment (FDI) into the EU reached its highest level in the past five years, amounting to €185 billion, while EU FDI in China remained stable at €184 billion.
Preparatory documents
Outcome documents
Remarks by EU Trade Commissioner Šefčovič at the Foreign Affairs Council (Trade) press conference
“Check against delivery”
First, I want to thank the Polish Presidency for organising this critical debate. This is time well spent, especially in a moment that requires constant and strategic coordination.
I had the chance to update the Ministers on my recent engagements with my US counterparts and to discuss the way forward.
The current trade situation with the United States, our most significant partner, is in a tough spot.
A range of tariffs is hitting a significant portion of EU exports. In fact, €380 billion worth of EU exports to the US – some 70 percent of our total exports – are facing tariffs of 20 percent or 25 percent, or even higher when combined with existing Most Favoured Nation tariffs, like the 27.5% duty on passenger cars altogether.
To put it in perspective, that’s over €80 billion in duties – an eleven-fold jump from the €7 billion the US currently collects.
From day one, my focus has been on initiating meaningful negotiations with the US Administration, building momentum at every step. And I appreciate the efforts of my counterparts, Secretary of Commerce Lutnick and USTR, Ambassador Greer, for maintaining an open and candid line of communication with us.
Where do we stand? Let me break it down into three key points.
First, both sides recognise that the EU-US trade relationship could benefit from a fresh look and a boost in strategic areas.
We face similar challenges, for instance, global overcapacities driven by non-market practices, the race for leadership in semiconductors, or securing critical minerals.
If we team up, we could build a truly transatlantic marketplace that benefits both sides.
In fact, as just mentioned by President von der Leyen, we have offered zero-for-zero tariffs for cars and industrial goods.
Second, let’s be clear, however, engaging the US will take both time and effort.
Right now, we are in the early stages of discussions because the US views tariffs not as a tactical step but as a corrective measure. We are fully prepared to sit at the negotiation table whenever our American partners are ready.
Third, while the EU remains open to – and strongly prefers – negotiation, we will not wait endlessly. Until we see tangible progress, we will be working along three tracks:
- Defend our interests through countermeasures
- Diversify our trade through new agreements
- Deter harmful trade diversions.
On defending via countermeasures: In response to the steel and aluminium tariffs, we received valuable feedback from our Member States and 660 stakeholders. After carefully reviewing all of it, we have worked to table a robust list of countermeasures, while balancing the burden across the Member States. We will be sending the final list and tariff levels to them later today.
The vote is set for April 9, with the final list adopted on April 15. Duties on products will kick in on that day for the first set of measures, and on May 15 for the remaining ones.
On diversification: It is in our interest to strengthen our trade and investment ties with partners around the globe, like India, Indonesia, Thailand, the Philippines or in the Gulf region.
I want to hear from all our chief negotiators overseeing our active free trade agreement talks – in order to assess how best to accelerate these talks.
On deterring trade diversions: we are prepared to use every tool in our trade defence arsenal to protect the EU Single Market, EU producers, and EU consumers.
We will start by enhancing our import surveillance system to track real-time import flows, feeding our action with timely intelligence. You have heard from President von der Leyen that to that effect, we will set up a task force.
Finally, let’s not forget that while the US has decided to step back from parts of the global trading system, that system is still crucial for the EU and the rest of the world.
The US makes up 13 percent of global goods trade. Our priority, along with the rest of the WTO, is to protect the remaining 87 percent and make sure that the global trade system prevails for the rest of us.
Turning to our discussion on China, I briefed the Ministers on my recent visit to Beijing, aimed at fostering cooperation to rebalance our trade and investment relationship with tangible results.
We covered:
- key longstanding issues, like overcapacity and subsidies,
- market access barriers for many European products,
- and the need to level the playing field for EU companies in China.
We also addressed Chinese investments in the EU EV supply chain to boost competitiveness and jobs in the EU, with a focus on technology transfer, R&D, and local sourcing of key components and the value generated here.
Lastly, we explored upgrading our customs cooperation, given that 91 percent of e-commerce entering the EU comes from China.
I believe this was an important first step in putting our engagement with China on the right track.
Let me conclude by thanking once again the Presidency and Michał for excellent sharing of what was today a very political, very strategic debate where I very much support all the very clear messages from all Member States for the unity of the European Union.
Thank you.
Source – EU Commission