EU Prepares Two-Track Plan for Trump Trade Ties

Several EU member states are pushing for prompt engagement with President-elect Donald Trump’s transition team to avoid disruption in trade relations with the United States, which is their largest trading partner. Among the discussions on November 21, EU diplomats indicated a desire to create a positive agenda with Trump's aides, even as the EU prepares retaliatory measures against potential tariffs of 10% to 20% that Trump has proposed. The EU is considering deeper cooperation with the U.S., including increased liquefied natural gas imports and alignment on trade practices concerning China. EU Trade Chief Valdis Dombrovskis emphasized the importance of being prepared to respond effectively to any new trade disputes, indicating a coordinated approach to potential challenges. With Poland set to take over the EU’s rotating presidency in January, officials stressed the necessity of maintaining strong transatlantic relations, especially in terms of security. Polish Deputy Minister Ignacy Niemczycki highlighted the need for the EU to remain united while proactively proposing solutions to the incoming U.S. administration. In the transportation sector, the emphasis on maintaining ties with the U.S. is particularly relevant as global supply chains, including those pertaining to logistics and trade infrastructure, could be affected by shifts in trade policy. A proactive approach by the EU could provide leverage to negotiate favorable terms, especially in critical areas such as transportation of goods, energy supplies, and regulatory harmonization. The potential for protectionist tariffs could significantly impact the cost and efficiency of transatlantic trade, underscoring the need for strategic planning and advanced diplomatic engagement.