Spain's Economy Minister Urges EU to Prepare for US Tariffs

Spain's Economy Minister, Carlos Cuerpo, has urged the European Union to explore all possible measures to counter the tariff actions imposed by the United States. This call comes as EU trade ministers are set to convene in Luxembourg to discuss potential responses to the tariffs implemented by the Trump administration. Cuerpo emphasized the importance of keeping all negotiation tools on the table and being prepared to support businesses and industries that may be affected by the U.S. tariff policies.

Cuerpo's remarks underscore the urgency of the situation, as the EU seeks to unify its stance on how to address the tariffs. Spain, along with other EU member states, is advocating for a comprehensive emergency plan to support affected sectors. The Spanish minister highlighted the need for maintaining an open dialogue and exploring all available options to mitigate the impact of the tariffs. He stated, "We must avoid discarding any negotiation tool. We have the appropriate tools, the necessary tools to respond, and currently, we should not discard any tool."

Cuerpo also noted that while the EU is open to negotiations and trade, it will not be naive in its approach. He added, "We are open to negotiations, we are open to trade, but we will not be naive." This sentiment was echoed by the Dutch Minister for Foreign Trade and Development Cooperation, who urged the EU to remain calm while preparing for potential retaliatory measures. The Dutch minister stressed the need for a balanced approach, ensuring that any response does not escalate tensions further.

The EU's response to the U.S. tariffs has been divided, with some member states advocating for a strong countermeasure while others prefer a more diplomatic approach. Italian Economy and Finance Minister and Prime Minister have both expressed concerns about the potential economic damage a trade war could cause. They have called for continued negotiations to resolve the issue without resorting to retaliatory tariffs.

The U.S. tariffs, which include a levy on EU products, have sparked a debate within the EU about the best course of action. While some countries are pushing for a firm response, others are advocating for a more measured approach. The EU's "anti-coercion tool," which allows for countermeasures against economic coercion, has not been used since its implementation. This tool could be a significant asset in the EU's response to the U.S. tariffs, as it allows for a range of measures, including tariffs on goods, restrictions on public procurement, and limitations on service trade and investment.

The EU's trade ministers will continue to discuss these options in the coming days, aiming to reach a consensus on the best way to address the U.S. tariffs. The outcome of these discussions will be crucial in determining the future of EU-U.S. trade relations and the broader impact on the global economy. The meeting in Luxembourg is a critical step in this process, as it aims to bring together the diverse views of EU member states and forge a unified response to the U.S. tariff actions.