EU trade chief says bloc could settle dispute by buying €50b in U.S. goods

Published 02/05/2025, 09:40
© Reuters.

Investing.com -- The European Union’s top trade negotiator suggested that the EU could resolve its trade dispute with the U.S. by purchasing 50 billion euros’ worth of American goods, such as gas and soybeans.

In an interview with the Financial Times, Commissioner Maros Sefcovic expressed that the EU is not willing to accept a baseline 10% U.S. tariff on European imports as a long-term solution to the trade issue.

Instead, the bloc could address U.S. complaints by buying more U.S. goods, thereby balancing the trade imbalance between the two economies. Sefcovic noted that his team is making progress with their counterparts in Washington towards a deal.

Sefcovic stated, “If what we are looking at as a problem in the deficit is 50 billion euros, I believe that we can really . . . solve this problem very quickly through LNG purchases, through some agricultural products like soybeans, or other areas.” 

However, achieving a deal that satisfies all 27 members of the EU and its common parliament will be challenging, according to the commissioner.

President Trump has frequently criticized the EU and other trade partners for what he perceives as unfair surpluses they maintain in their trade in goods with the U.S. One proposed solution that has been repeatedly suggested by policymakers is to increase purchases of American liquefied natural gas. This could help reduce the gap in EU-U.S. trade, Sefcovic suggested.

On April 2, President Trump announced his intention to impose a comprehensive 20% tariff on goods from the EU and other trading partners, claiming these duties to be reciprocal.

The package of tariffs was later put on hold for 90 days, although a 10% baseline remains in effect, as do sector-specific import duties on cars and some metals.

In response to Trump’s tariffs, the EU outlined its own package of tariffs on U.S. goods, including soybeans, motorcycles, and chewing gum. However, certain key sectors were exempt from the duties.

Brussels also paused that package for a reciprocal 90 days to allow for trade talks to take place.

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