Maroš Šefčovič’s remarks came just hours before a high-stakes meeting with senior US officials.

By Thomas Moller-Nielsen

The EU surplus with the US represents “a drop in the ocean” of total transatlantic trade and provides “no justification” for US President Donald Trump’s threatened tariffs on US imports, the EU trade chief Maroš Šefčovič said ahead of a crunch meeting with US officials.

Šefčovič said the EU’s €50 billion net surplus is “relatively small” and amounts to just 3% of the €1.5 trillion in total transatlantic trade of goods and services.

“This is a small fraction, I would say a drop in the ocean if you will, of our overall economic exchanges,” he said at an event hosted by the American Enterprise Institute, a Washington-based US think tank.

The veteran commissioner added that the bloc’s €150 billion surplus in goods is “nearly balanced out” by its €100 billion deficit in services and that the EU’s net surplus is ultimately “driven by the preferences of European and American consumers.”

He also noted that Trump’s threatened duties “would create unnecessary barriers” to EU exports and leave Brussels with “no choice but to respond firmly and swiftly.”

“But we do hope to avoid this scenario… and remain committed to constructive dialogue,” he added.

Šefčovič will hold talks later today with senior Trump administration officials, including Commerce Secretary Howard Lutnick, trade representative nominee Jamieson Greer, and National Economic Council chief Kevin Hassett.

The Slovak’s remarks came a day after Trump reiterated his criticism of the EU’s “very unfair” trade policies and repeated his false claim that the US deficit with the EU amounts to $350 billion (€335 billion).

“They don’t take our cars, they don’t take our farm products. They don’t take almost anything. They take very little. And we’re going to have to straighten that out – and we will, I have no doubt about it,” Trump said.

Since returning to the White House last month, Trump has announced 25% duties on steel and aluminium and “reciprocal tariffs” aimed at matching the import levies of other countries.

The steel and aluminium tariffs are set to take effect on 12 March while the reciprocal duties could be implemented as early as 2 April, according to the White House.

Analysts and industry groups said the threatened duties would inflict significant damage on the European economy, which is projected to grow at just a third of the US rate over the next five years.

The auto sector is particularly vulnerable. The US is the top export destination for the EU’s automobile sector, purchasing €56 billion worth of European cars and auto components in 2023, according to Oxford Economics.

Exacerbating these concerns, Trump said on Tuesday that a new tariff on US car imports would “probably” be announced on 2 April and “will be in the neighbourhood of 25%.”

Echoing remarks made over the weekend, Šefčovič suggested on Wednesday that Brussels could reduce its current 10% levy on automobiles, which is four times higher than the US rate.

“We’re ready to look at the tariffs for the cars,” he said, adding that he will strive to find a “common solution” on an “item-by-item” basis with his American counterparts.

“That would be, I would say, my request and my plea with my counterparts,” he said.

Source: Euractiv.com