The European Union is preparing a response to the tariffs imposed by the United States under President Donald Trump. The EU finance ministers are analyzing how to use a 90-day suspension of increased US tariffs to negotiate a trade agreement with Washington. If an agreement isn't reached, they will coordinate efforts to manage the impact of higher tariffs.
The EU is preparing strategies in case a trade agreement with the US is not reached. The European Commission will handle negotiations with Washington for the EU's 27 member states. If a trade deal is reached, possibly with zero tariffs on industrial goods, the issue will be resolved. However, failure to reach an agreement would require the 27 European governments to support the most affected industries, including steel, aluminum, automobiles, lumber, and pharmaceuticals.
The European Central Bank and the European Commission estimate that the US tariffs could substantially impact the EU economy, potentially causing a recession.
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