Germany urges EU to negotiate to prevent trade war as bloc ministers convene.

 Trade ministers from the EU's 27 member states will meet online to discuss the bloc's response to U.S. President Donald Trump's decision.

EU Urged to Negotiate with U.S. to Prevent Trade War, Germany Says Ahead of Ministerial Talks

The European Union should prioritize negotiations with Washington to prevent a transatlantic trade war while preparing countermeasures, Germany’s economy ministry stated on Wednesday, ahead of a virtual meeting of EU ministers.

Trade ministers from the EU’s 27 member states will meet online at 4 p.m. (1500 GMT) to discuss the bloc’s response to U.S. President Donald Trump’s decision to impose a 25% tariff on all steel and aluminum imports starting March 12.

European Commission President Ursula von der Leyen has condemned the tariffs as unjustified, warning that they would trigger “firm and proportionate countermeasures.” One EU diplomat emphasized the need for a “cool-headed” approach, noting that a month remains before the tariffs take effect.

Germany’s Economy Minister Robert Habeck will represent his country in the meeting, stressing the importance of avoiding a trade dispute while maintaining EU unity.

“It remains crucial for the European Commission to engage with the U.S. administration to find a resolution on tariffs,” Habeck’s ministry said. “At the same time, it must make clear— as the Commission has already indicated— that countermeasures are prepared.”

The European Commission has not disclosed specific retaliatory measures, but one option is to reinstate tariffs on U.S. goods such as bourbon, motorcycles, and orange juice—restrictions first introduced in 2018 but later suspended under a truce between von der Leyen and former U.S. President Joe Biden.

While the EU is not the largest supplier of steel and aluminum to the U.S., exports remain significant. The U.S. is the EU’s second-largest steel export market, averaging €3 billion ($3.1 billion) in annual shipments over the past decade. EU aluminum exports to the U.S. reached €2.4 billion in the first 11 months of 2024.

Lobby group European Aluminium has urged the European Commission to enter immediate negotiations with U.S. officials to find a resolution.