When Donald Trump was president last time, Cecilia Malmström handled the EU's negotiations on tariffs and trade agreements. Then, the USA imposed tariffs on European steel and aluminum.
Now, Trump has introduced broad tariffs against Canada and Mexico.
I'm not at all surprised, he said it throughout the entire election campaign. It will come against the EU as well, says Cecilia Malmström to TT.
Maybe I'm surprised that it's coming so quickly, and with 25 percent.
Lie low
She has four pieces of advice to give to EU countries – first and foremost to lie very low and see what happens. If tariffs are then imposed, it's a matter of striking back with counter-tariffs.
Trump threatens with things, and he does it because he notices that it works. If you just give in, he'll continue, he's like a bully, says Malmström.
She reminds us that there are already tariffs in place, which the EU froze when Joe Biden took office as president. The freeze expires at the end of March, and if the EU Commission doesn't decide to keep them frozen, they will come into effect.
The third piece of advice is to show oneself open to negotiating, but then one should first have responded with counter-tariffs.
Greenland on the table?
Negotiating with Trump is, however, a challenge.
If one is to negotiate, then a lot of other things will be on the table, says Malmström.
In Canada's and Mexico's case, it has, for example, been about narcotics, migration, and border issues. In the EU's case, it could be Greenland and laws for digital platforms.
The fourth piece of advice from Malmström is to continue negotiating free trade agreements with other countries. Moreover, the EU must improve its own competitiveness.
Can hit hard
How hard potential tariffs against the EU will hit depends, of course, on how high and comprehensive they become.
But it's clear that tariffs of 10-20 percent across the board, like he did against Canada and Mexico, that will hit very hard, says Malmström.
It's not a pleasant scenario, it's terrifying. We have, after all, lived in a world with basically international rules of the game, and Trump is completely disregarding them, both internationally and nationally.
