Part 4/10:
The EU, for its part, has thus far adopted a near-silent stance while global markets reel from the effects of the tariffs. President of the European Commission, Ursula von der Leyen, has offered to discuss a free trade deal with the U.S., but it remains uncertain whether Trump will engage in these talks.
The EU's tariffs are categorized into three major bundles: 25% tariffs on aluminum and steel, 25% on car imports, and a 20% rate on various other goods. The EU maintains a significant trade surplus with the U.S., exporting €530 billion worth of goods while importing €333 billion. Notably, Germany, which heavily relies on car exports to the U.S., stands to lose significantly should the proposed tariffs take effect.
As the EU contemplates its response, three strategic options have emerged.