Europe is prepared to respond if US President Donald Trump carries out his threat to raise tariffs on cars and trucks imported from the European Union to 25%, Eurogroup President Kyriakos Pierrakakis has said.
“The number one choice is always dialogue – we want to be a predictable partner in the international economy, we believe in the transatlantic relationship,” he told Bloomberg Television Monday. “But having said this, if there is a deviation from what we have agreed upon, obviously all options are on the table and all choices will be on the table.”
The row has further strained relations over the stalled US-EU trade agreement. Although a preliminary deal was reached last July, EU lawmakers have not yet ratified it, seeking additional revisions. Trump on Friday accused the bloc of “not complying with our fully agreed to trade deal.”
Pierrakakis, speaking ahead of a Eurogroup meeting in Brussels on Monday, rejected that claim, saying the bloc has “met all prerequisites in this equation.”
“Our side of the bargain has been fully met, has been fully kept with regards to the joint statement commitment and the legislative timetable which we had in order to pass them,” he told Bloomberg. “We need to speed up, we know that. But there is predictability on our end.”
European stocks edged lower in early trading Monday, weighed down by automakers after Trump’s tariff threat. The Euro Stoxx 50 was down 0.08% at 0720 GMT, while London markets were closed for a holiday. Shares in BMW fell 2.1%, Mercedes-Benz Group dropped 1.9%, and Volkswagen declined 1.7%, weighing on the broader index.
