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3 Feb 2025

EU official: Trump tariff threats ‘need to be taken seriously’

We spoke to Brando Benefei, who is the Chair of the European Parliament’s US relations delegation, and began by asking him for his reaction to Donald Trump’s comments that the EU is out of line.

Brando Benefei: I think that Trump’s threats need to be taken seriously. Europe, in front of these declarations, cannot just wait. We will need to react if tariffs are being imposed with counter tariffs and also with no tariffs measures – like rules for preferential treatment for purchasinG made-in-EU products.

Krishnan Guru-Murthy: He says he wants American cars to get into Europe and he wants American farm products. He says Europe sells the other way, but it doesn’t take American goods. Is Europe prepared to do that?

Brando Benefei: The exports of agricultural products and of cars are an important part of the exports of US towards the EU. I think we can find the solutions, but it cannot be that we accept to buy more cars under threats.

Krishnan Guru-Murthy: Right. But the trouble is the EU is very bad at unity, isn’t it? I mean, you know, coming together…

Brando Benefei: It has been bad in some moments, but in other moments it has been good. You can find unity. And I think we need unity now – in front of Trump. Any member state will try to have short-term bilateral deals. We’ll get something maybe in the short term, but then we become completely dependent on the actions of Trump, and that would not be safe for any citizens.

Krishnan Guru-Murthy: The big issue, though, as well, that he might try and get a change on, is China. For Europe to change its engagement with China, to fall into line with whatever he’s going to do, in terms of tariffs and reducing American engagement with China. Is Europe prepared to engage on that topic?

Brando Benefei: I think it would be very difficult, to be frank, because we are aligned with the US on certain issues on China already very clearly – on security and disinformation threats and geopolitical issues. But we have a different approach on economic relations. They’ve seen how difficult it was to pass with the member states tariffs on electric vehicles from China. So just on that, we have seen the divisions of the member states.

Krishnan Guru-Murthy: Now, if Britain cuts some sort of preferential deal when it comes to trade barriers, how will the European Union treat Britain?

Brando Benefei: Well, I think it’s, first of all, not much in the interest of Great Britain – the United Kingdom – to be completely disaligned with Europe because it would become dependent on what Trump will decide every week. And the EU wants the UK to be aligned. It’s good that today Prime Minister Starmer was also in a meeting with the European Union leaders.

Krishnan Guru-Murthy: The implication of what he was saying last night was that he’s going to hit the EU with tariffs and probably cut a deal with Britain. The question is, if he does that, is the EU going to start treating Britain like America?

Brando Benefei: I think he will cut a deal with the EU too.

Krishnan Guru-Murthy: Well, it may take a little longer.

Brando Benefei: It may take a little longer. But in the end, I’m not convinced that the UK will get a better deal if it moves along.

Krishnan Guru-Murthy: Right. But what about the question of whether the EU would retaliate against Britain for taking America’s side?

Brando Benefei: No I don’t think we are in that situation. But obviously, it is a matter of sensitivity – what will happen. So we will see step by step.

Krishnan Guru-Murthy: Sensitivity sounds like a euphemism. What do you mean?

Brando Benefei: It means that we want the UK to be working with us in this context because we think we are both interested, both the EU and the UK, not to have a tariffs-led war.

Krishnan Guru-Murthy: I mean, a lot of people in Britain say that’s the point of Brexit, that we can cut our own deals.

Brando Benefei: Yeah, it didn’t have a lot of success until now. I don’t think it’s going to be a success later.

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