Brussels is developing a two-step trade strategy to deal with Donald Trump, offering the Republican a quick deal if he wins a second term as president, and targeted retaliation if he opts for punitive tariffs instead.
EU officials see the carrot-and-stick approach as the best response to Trump’s pledge to impose a 10 per cent minimum tariff, which they estimate could reduce EU exports by around €150bn annually.
Negotiators are planning to approach the Trump team, if he wins the election in November, before he takes office to discuss which US products the EU could buy in bigger quantities.
Should talks over improving trade fail and Trump applies higher tariffs, the European Commission’s trade department is drawing up lists of imports it could hit with duties of 50 per cent or more.
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