LUSA 01/25/2025

Lusa - Business News - Portugal: US tariffs on EU will be negotiated 'without drama' - minister

Milan, Italy, Jan. 24, 2025 (Lusa) - The Portuguese minister of foreign affairs, Paulo Rangel, argued on Friday in Rome that the possibility of the new US administration imposing tariffs on the European Union (EU) should be dealt with "without drama", saying he was convinced that there would be negotiations with Washington.

Speaking on the sidelines of a visit to Italy, the head of Portuguese diplomacy, asked about Donald Trump's threat to impose trade tariffs on the EU as well, which he reaffirmed in his speech the day before at the World Economic Forum in Davos, noted that, as a rule, the United States is protectionist in its economy and the European bloc has already had to deal with this situation, both in Trump's first term and in that of former president Joe Biden.

"Tariff policy is an exclusive remit of the European Union itself, and in particular of the Commission. But obviously we look at [this situation] with concern, but also without drama, because already in president Trump's first term there was this issue and, to tell the truth, with president Biden, the ‘Inflation Reduction Act’ was very, very complicated for the European Union and forced major negotiations," he pointed out.

Commenting that "sometimes you get the idea that things are going to change dramatically", Paulo Rangel noted that, "in reality, obviously the United States has protection for its economy", regardless of the various administrations, "albeit with different policies, that is, by using different instruments", which "nevertheless have an impact on the EU, which is a key trading partner of the US, and a big impact".

"So we're going to have to deal with it at European level. There are already many solutions being studied, but obviously, when this measure arises and with its exact cut-off, there will be a reaction and a negotiation, I have no doubt about that, because that's what has happened in the past, in the last two terms, with very different presidents," he said, emphasising that he expects "an intense negotiation with the United States in order to seek solutions that benefit both parties and that, therefore, are not damaging to just one."

In his speech on Thursday via videoconference at the Davos Forum, Trump told business leaders to manufacture their products in the United States, otherwise "they will have to pay tariffs", and criticised the European Union, complaining about Brussels' regulatory burdens and what he said was “very, very unfair” treatment of the United States.

On Trump's pressure for Russian president Vladimir Putin to negotiate a peace agreement with Ukraine to end the war, including the threat the day before to impose sanctions on Moscow if it doesn't sit down at the negotiating table, Paulo Rangel noted that "president Trump, while he was still a candidate, gave very clear signals that he was going to be very quick in building a negotiation", but emphasised that the outcome must respect international law.

The minister of foreign affairs considered that "it is positive" that there are negotiations, "as long as they respect the fundamental principles, especially in the final resolution", and "mediated by those who have the capacity to do so, but with the intervention of all those who are affected in one way or another or who will suffer the consequences of these negotiations".

"Now we have to see what the end result is. It has to be a result that safeguards international law, that's very important, and in particular that safeguards principles of the UN Charter," he emphasised.

Trump, who promised to end the war in 24 hours and is now calling for 100 days to achieve peace, threatened on Tuesday to impose more sanctions on Russia if Putin refuses to negotiate a ceasefire with Ukraine.

Trump also said that he was reconsidering sending arms to Ukraine and that he intended to speak ‘very soon’ with his Ukrainian counterpart, Volodymyr Zelensky, and with Putin.

"If we do not reach an agreement soon, I will have no choice but to impose high levels of taxes, tariffs and sanctions on any product that Russia sells to the United States, as well as to other participating countries," Trump threatened.

 

 

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