Foreign
EU says it prefers negotiations, but proposes first tariffs on US imports
The European Commission said on Monday it had offered a “zero-for-zero” tariff deal to avert a trade war with U.S. President Donald Trump as EU ministers agreed to prioritise negotiations, while striking back with 25% tariffs on some U.S. imports.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars and broader tariffs of 20% from Wednesday for almost all other goods under Trump’s policy to hit countries he says impose high barriers to U.S. imports.
On Monday evening, the Commission proposed its first retaliatory tariffs at 25% on a range of U.S. imports in response to Trump’s steel and aluminium tariffs rather than the broader levies.
However, the list was shortened after the EU executive bowed to pressure from member states and removed bourbon, wine and dairy after Trump threatened a 200% counter-tariff on EU alcoholic drinks. France and Italy, major exporters of wine and spirits, were particularly concerned.
EU trade chief Maros Sefcovic said earlier on Monday the retaliation would impact less than the previously announced 26 billion euros ($28.4 billion). The tariffs for most of the goods will go into effect May 16 and some from December 1.
Ministers overseeing trade met in Luxembourg on Monday to debate the EU’s response and discuss relations with China. Many said the priority was to launch negotiations to remove Trump’s tariffs, rather than fight them.
Michal Baranowski, deputy economy minister of Poland, told a press conference after the meeting that his EU counterparts did not want to be “trigger-happy”.
Sefcovic said discussions with Washington were at an early stage and that he had offered “zero-for-zero” tariffs for cars and other industrial products, expressing hope that discussions could begin.
However, Trump’s top trade adviser on Monday dismissed tech-billionaire Elon Musk’s push for “zero tariffs” between the U.S. and Europe, calling the Tesla CEO a “car assembler” reliant on parts from other countries.
“While the EU remains open to – and strongly prefers – negotiation, we will not wait endlessly,” Sefcovic said, adding the bloc would push ahead with countermeasures and steps to avoid floods of diverted imports.
The EU is set to approve the first retaliatory measures this week. The bloc will start collecting the tariffs on April 15, with a second tranche starting a month later.
The removal of bourbon from the list of items subject to the EU’s retaliatory tariffs on U.S. imports “would be great news, and we are hopeful this is the case,” said Chris Swonger, chief executive of the Distilled Spirits Council of the United States. “It would be the first step toward getting the U.S.-EU spirits sectors back to zero-for-zero tariffs and untangling distilled spirits products from these wider trade disputes.”
EU KEEPS ALL RETALIATION OPTIONS OPEN
The bloc is expected to produce a larger package of countermeasures by the end of April, as a response to U.S. car and broader tariffs.
Sefcovic said the EU was ready to consider all retaliatory options. One is the EU’s Anti-Coercion Instrument, which allows it to target U.S. services or to limit U.S. companies’ access to EU public procurement tenders.
“We are prepared to use every tool to protect (the) single market,” he said, echoing the views of French Trade Minister Laurent Saint-Martin.
In a war of tariffs on goods, Brussels has less to target than Washington, given EU goods imports from the U.S. totalled 334 billion euros ($366.2 billion) in 2024, against 532 billion euros of EU exports to the U.S.
Some EU countries, particularly those exposed to trade with the United States, urged caution. Irish Foreign Minister Simon Harris described the Anti-Coercion Instrument as “very much the nuclear option.”
Baranowski of Poland said EU members were willing to keep options open, with a stress on proportionality.
“There were various ideas put on the table. Some countries mentioned services. Others didn’t. Some countries mentioned digital services, others didn’t,” he said.
Outgoing German Economy Minister Robert Habeck said the EU should realise it was in a strong position – if it was united.
“The stock markets are already collapsing and the damage could become even greater … America is in a position of weakness,” he said in Luxembourg.
Foreign ministers of military-ruled Sahel states of Burkina Faso, Mali and Niger said on Monday they endorse an initiative offering them access to global trade through Morocco’s Atlantic ports, Reuters reported.
The foreign ministers expressed their countries’ position during a meeting with Morocco’s King Mohammed VI in Rabat, it said.
The West African nations, run by military leaders who took power in coups in recent years, withdrew from the regional grouping ECOWAS last year and formed an alliance known as the Confederation of Sahel States (AES).
Morocco, a major investor in West Africa’s financial and agricultural sectors, announced its trade access initiative in November 2023, after ECOWAS imposed trade restrictions on the three states.
The initiative is conducive to “diversifying our access to the sea,” Mali’s foreign minister Abdoulaye Diop told state media.
The meeting “is part of the strong and longstanding relations of the Kingdom with the three brotherly countries of the Alliance of Sahel States,” Morocco’s news agency said.
The visit takes place as relations between the AES and Algeria, Morocco’s regional rival, deteriorate.
Algeria has cut ties with Morocco and backs the Polisario Front which seeks an independent state in Western Sahara, a territory Morocco considers its own and where it is building a port worth $1 billion.
The new AES grouping expelled French and other Western forces and turned towards Russia for military support.
In December, Morocco mediated the release of four French spies held in Burkina Faso, five months after Paris recognised Rabat’s sovereignty over Western Sahara.
A massive power outage paralyzed Spain and Portugal on Monday in an incident with no immediate explanation.
“It’s best to not speculate. We will know the causes soon. We are not discarding any hypothesis, but right now, we just focus on what’s most important: returning electricity to our homes,” Spanish Prime Minister Pedro Sánchez said at a news conference Monday.
The stoppage, which occurred about 12:30 p.m. Madrid time, caused chaos across the Iberian Peninsula and showed the vulnerability of Europe’s electrical grid — even on days without extreme weather or spiking demand.
Trains stopped running. Hospitals canceled surgeries, according to news agencies, and depended on backup generators. Business ground to a halt as machines were unable to process credit card transactions. The outage even suspended several Madrid Open tennis matches, with photos showing a court with nonfunctioning scoreboards and darkened stands. Sánchez urged citizens to restrict cellphone use and to call emergency dispatchers only “when it is really necessary.”
By about 5:30 p.m. Madrid time, Red Eléctrica, the corporation that operates Spain’s electricity grid, said some power had been restored across corners of the peninsula, including parts of Catalonia, the Basque Country and Andalusia. About two hours later, the utility provider said more than a fifth of the peninsula’s power had been recovered. Full recovery may take up to 10 hours, Red Eléctrica told Spanish news outlets, which means the country’s power could be restored some time late Monday.
“Causes are being analyzed, and all resources are being dedicated to addressing the issue,” Red Eléctrica said in a statement.
More than 50 million people live on the Iberian Peninsula, but authorities did not provide an immediate estimate for the number of people affected by the outage. Portugal’s national grid operator described it as a “massive cut” in electricity supply across the peninsula. Data from Red Eléctrica showed a sudden plunge in electricity demand from about 27,000 megawatts to less than 13,000. Levels remained abnormally low two hours later.
Spain’s Energy Ministry said in a statement that Sara Aagesen, a deputy prime minister, visited the Red Eléctrica control center to “learn about the situation firsthand and monitor the incident.”
“All necessary measures will be put in place to restore normality as quickly as possible,” the statement said.
Prime Minister Sánchez also held a meeting at the control center, with Aagesen and several other ministers present, the Spanish newspaper El País reported, and Spain’s National Security Council called a meeting to address the outage.
Portugal’s Lusa News Agency said the country’s cybersecurity center had seen no evidence so far that the blackout stemmed from a cyberattack. Separately, the Reuters news agency quoted unnamed officials as saying a cyberattack had not been ruled out.
The Spanish grid also connects with Morocco, France, Andorra and Portugal. Spain and France experienced a major blackout on July 24, 2021, but it lasted less than an hour.
Previous power outages in Europe have been caused by technical problems, lightning strikes and damaged cables. In 2003, Italy faced a huge blackout because a tree was too close to a power line, resulting in a flashover, or a jump of electricity from the line to vegetation.
Russian President Vladimir Putin has announced a temporary ceasefire for the war in Ukraine.
The Kremlin said the ceasefire would run from the morning of 8 May until 11 May – which coincides with victory celebrations to mark the end of World War Two.
In response, Ukraine’s Foreign Minister Andrii Sybiha called for an immediate ceasefire lasting “at least 30 days”.
While US President Donald Trump, who has been attempting to broker a truce between the two sides, said he wants to see a permanent ceasefire, the White House said.
The Kremlin announced a similar, 30-hour truce over Easter, but while both sides reported a dip in fighting, they accused each other of hundreds of violations.
Ceasefires have been attempted more than 20 times in Ukraine – all of them failed eventually, and some within minutes of going into effect.
The most recent one, over Easter, was very limited in scope and only resulted in a slight reduction in fighting, with both sides accusing each other of violating the truce.
In a statement on Monday, the Kremlin said Putin declared the ceasefire “based on humanitarian considerations”.
A translation of the statement said: “Russia believes that the Ukrainian side should follow this example.
“In the event of violations of the ceasefire by the Ukrainian side, the Armed Forces of the Russian Federation will give an adequate and effective response.
“The Russian side once again declares its readiness for peace talks without preconditions, aimed at eliminating the root causes of the Ukrainian crisis, and constructive interaction with international partners.”
Following its release, Ukrainian Foreign Minister Sybiha said: “If Russia truly wants peace, it must cease fire immediately.”
“Why wait until May 8th?” he wrote on X. “If the fire can be ceased now and since any date for 30 days—so it is real, not just for a parade.”
He said Ukraine is ready to support a “lasting, durable, and full ceasefire. And this is what we are constantly proposing, for at least 30 days”.
White House press secretary Karoline Leavitt said Trump was growing “frustrated with leaders of both countries”.
“He wants to see a permanent ceasefire.
“I understand Vladimir Putin this morning offered a temporary ceasefire. The president has made it clear he wants to see a permanent ceasefire first to stop the killing, stop the bloodshed.”
The latest announcement comes during what the US has described as a “very critical” week for Russia-Ukraine peace talks.
Washington has been trying to broker a deal between the two sides, but the Donald Trump administration has threatened to pull out if they do not see progress.
Putin is keen to create the impression that Russia is serious about seeking peace – and he is keen for Trump to hear that message given Ukraine has accepted Washington’s proposal for a more lasting 30-day ceasefire.
It comes after the US president expressed annoyance with Russia’s continued attacks on Ukraine.
Russia launched a full-scale invasion of Ukraine on 24 February 2022, and currently controls about 20% Ukraine’s territory, including the southern Crimea peninsula annexed by Moscow in 2014.
It is estimated that hundreds of thousands of people – the vast majority of them soldiers – have been killed or injured on all sides since 2022.
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