EU woos new trade partners amid US tariff tensions

Sharjah 24 – AFP: Shaken by US President Donald Trump’s sweeping tariffs, the European Union has launched a diplomatic and economic push to diversify its global trade alliances—particularly across Asia, Latin America, and other regions. EU Commission President Ursula von der Leyen responded to the tariff news not from Brussels, but from Uzbekistan, underscoring the bloc’s pivot toward new markets.

Despite Trump announcing a 90-day pause, the EU still faces steep tariffs—10% on most goods and even higher on steel, aluminum, and automobiles—leaving Brussels in a tough negotiating position with its top trading partner.

Seeking alternatives to the US

While attempting to preserve its €1.6 trillion ($1.8 trillion) trade relationship with the US, the EU is aggressively seeking new partners.

“Europe continues to focus on diversifying its trade partnerships,” said von der Leyen, emphasising outreach to nations responsible for 87% of global trade.

China has also invited the EU to form a united front against US protectionism, though experts warn that replacing US demand is a complex and long-term endeavor.

A packed trade agenda

Since January, the EU has accelerated trade talks and summits:

Revived negotiations with Malaysia and Mexico
Held high-level meetings with India, South Africa, and Canada
Launched talks with the UAE for a free trade deal
Scheduled a summit with China in July
Planned a November summit with Latin America and Caribbean states

However, internal EU divisions persist. The Mercosur agreement with South America still needs ratification from member states, with France maintaining its opposition due to agricultural concerns.

China: A strategic but risky partner

China presents both opportunities and challenges for the EU. While trade cooperation could strengthen amid the US-China conflict, fears persist over a potential influx of cheap Chinese goods, especially if the US market becomes less accessible.

An EU spokesperson confirmed discussions with Beijing to find a resolution to last year’s tariffs on Chinese electric vehicles—imposed due to unfair subsidies.

A delicate balancing act

The EU is trying to maintain its global competitiveness while committing to open and fair trade. Despite challenges, von der Leyen’s diversification strategy is gaining traction among European leaders like Spain’s Prime Minister Pedro Sanchez, who reaffirmed Europe’s commitment to Southeast Asia.

Still, experts caution that no other market can fully replicate the economic scale of the United States in the near term. The road to trade diversification may be long, but Brussels appears committed to reshaping its global trade map.