EU finance ministers gathered in Brussels on Monday and Tuesday for an Economic and Financial Affairs Council meeting, where they responded cautiously to US President Donald Trump's latest tariff threats. Trump announced on social media his intention to impose 25% tariffs on EU cars, escalating trade tensions that have simmered since the July 2025 EU-US trade deal.
The ministers emphasized their commitment to the framework agreed with Washington last July, which caps US tariffs on EU goods at 15%. That deal, signed by Trump and European Commission President Ursula von der Leyen, is currently under negotiation by EU governments and MEPs ahead of implementation. The bloc has pledged to remove tariffs on US industrial goods as part of the agreement.
"We have a deal and that deal is being negotiated," French Finance Minister Roland Lescure told journalists on Monday. "We are willing to keep on with this deal in good faith, and we hope everyone is in the same frame of mind."
Lescure echoed von der Leyen's earlier remarks, in which she called for calm. "A deal is a deal, and we have a deal. And the essence of this deal is prosperity, common rules and reliability," von der Leyen said on Tuesday. "We want from this work (to achieve) mutual gain, cooperation and reliability. And we're prepared for every scenario."
Berlin Seeks to Avoid Escalation
Trump's tariff threat came last Friday after German Chancellor Friedrich Merz criticized the US war in Iran. The US also announced the withdrawal of 5,000 troops from Germany, further straining transatlantic relations. German Vice-Chancellor Lars Klingbeil said on Monday that Berlin wanted to avoid "escalation" but was prepared for intensified tensions. "We want to have a common path with the US. But of course, it is clear that we are also prepared," Klingbeil said.
The European Commission has indicated that options remain "open" on the European side if the US threats are carried out. Last year, the EU suspended a package targeting €95 billion worth of US products after weeks of trade disputes. The bloc's anti-coercion instrument, which allows retaliation against economic pressure from third countries by restricting licenses or intellectual property rights, has also been repeatedly raised as a potential tool.
Spanish Economy Minister Carlos Cuerpo was more dismissive, viewing Trump's announcement as just another social media post. "With regard to this weekend news of 25% for cars or trucks, there is no measure, no specific executive order. Therefore, there would be nothing new beyond that of the tweet or, in this case, of that intention," he said.
European Commissioner for Trade Maroš Šefčovič is scheduled to meet US Trade Representative Jamieson Greer on Tuesday to try to ease tensions ahead of a G7 trade ministers meeting. The meeting comes amid broader geopolitical strains, including rising oil prices due to tensions in the Strait of Hormuz, which have weighed on European shares.
The EU's cautious stance reflects a desire to preserve the fragile trade deal while preparing for potential escalation. As von der Leyen put it, the bloc is "prepared for every scenario."
