Eurozone countries plan to use the 90-day suspension of US trade tariffs as an opportunity for dialogue, aiming to avoid a damaging trade war, according to Minister for Finance Paschal Donohoe.
Speaking in Warsaw ahead of Eurogroup and EU finance ministers’ meetings, Donohoe said European economies would engage “in a constructive way” with the United States in hopes of negotiating a solution to escalating trade tensions.
His remarks follow US President Donald Trump’s announcement of a temporary halt to new tariffs on selected countries, giving a 90-day window for negotiations. However, the White House confirmed that a sweeping 10% duty on nearly all US imports would remain in effect during this period.
“We want to negotiate first,” said Donohoe, who also serves as President of the Eurogroup, an informal assembly of eurozone finance ministers. “We want to respond back to developments across the world in a very proportionate and strategic way.”
Donohoe emphasized that the European Union would continue to present a unified response, with Ireland contributing to efforts to seek an alternative to what he warned could lead to “a world of lower growth, higher inflation, and many risks to the progress we’ve made in recent years in Europe.”
Reinforcing this position, EU Economy Commissioner Valdis Dombrovskis also spoke in Warsaw, stating that while the bloc is prepared to find “mutually acceptable solutions” with the US, it stands ready to defend its economy and companies if the US fails to reverse its tariff policy.
“If we do not see movement from the US side… we will have to defend our economy. We will have to defend our companies,” Dombrovskis said.
He warned that without cooperation, the EU would take necessary countermeasures to protect its industries. Dombrovskis is set to join EU ministers for two days of talks on market volatility and how best to shield the European economy from potential fallout if US trade restrictions escalate.
The renewed tensions come as President Trump announced further aggressive tariffs on China, increasing import duties to 125%. In retaliation, China stated it would match the increase, raising tariffs on US imports to 125%, up from 84%.
Despite the uncertainty, Donohoe voiced confidence in the euro area’s economic foundations, describing them as “resilient and strong,” even amid growing concerns about global trade stability.
With the 90-day pause offering a narrow window for negotiation, EU leaders now face the urgent task of navigating a volatile geopolitical landscape and averting a full-blown transatlantic trade conflict.
