Trump's attitude in trade negotiations remains tough; if an agreement cannot be reached, Europe is already prepared with countermeasures…
During a meeting with Italian Prime Minister Meloni, US President Trump stated that he expects to reach a trade agreement with the EU, but at the same time indicated he is not in a hurry to finalize an agreement aimed at reducing tariffs.
"There will be a trade agreement," Trump said on Thursday, adding, "I fully expect this, but it will be a fair agreement."
Trump did not provide a timeline for when he expects to finalize the first agreements with trade partners seeking to avoid high tariffs, only stating that this will happen "at a certain point in time," and insisted that other countries need to make concessions. "We are not in a hurry," Trump added. "There will be no big problem in reaching an agreement with Europe or anyone else."
Meloni thanked Trump for accepting the invitation to visit Italy "in the near future" and expressed hope that he could meet with EU officials to discuss trade issues. Having face-to-face negotiations with the EU would give European Commission President Von der Leyen the opportunity to have direct dialogue with Trump and would help solidify Meloni's role as a communication channel between Europe and the USA.
At the beginning of the meeting, Meloni expressed optimism about reaching a trade agreement but emphasized that Trump needs to engage with other European leaders, stating, "I cannot make this deal on behalf of the EU."
Meloni stated that she discussed areas in which the two countries can cooperate, including defense, space, and energy, adding that Italy "will have to increase its liquefied natural gas (LNG) imports." Trump has made promoting US Energy exports a key element of his trade agenda.
Meloni said, "For me, the goal is to make the West great again. I believe we can do it together."
Meloni's visit to Washington has attracted close attention from other trade partners eager to understand what concessions Trump is seeking. The Italian Prime Minister is an ideological ally of the US President and a leader among the G7 economies, and she is seen as a potential bridge between the Trump administration and the European Union in the current trade war that has stirred financial markets and deepened concerns about a global recession.
Last week, Trump decided to suspend high tariffs on the EU and other trade partners, prompting foreign leaders to rush to reach an agreement with the US government during a 90-day negotiation period. If no agreement can be reached with Trump, the EU could face a 20% "retaliatory" tariff, double the current 10% rate.
According to those familiar with the plans, EU officials are drafting a proposal to limit certain exports to the US as a possible countermeasure if negotiations fail. This action would be a supplement to the retaliatory tariffs that Europe previously prepared but suspended when Trump temporarily withdrew his higher tariff rates.
When asked in the meeting whether the EU would push for these additional tariffs, Meloni expressed confidence in reaching an agreement to avoid a tit-for-tat situation.
Trump stated that he still anticipates imposing a "considerable baseline" tariff on imported goods, implying that he would not completely abandon tariffs.
Trump personally engaged in trade negotiations with foreign leaders; Meloni's visit coincided with his reception of the Japanese delegation on Wednesday and his phone call with Mexican President López Obrador.
US Treasury Secretary Basant highlighted the priority of collaborating with the world's 15 largest economies, noting that government officials expect to meet with South Korean negotiators next week, while talks with India are also ongoing.
Trump remarked, "Many countries want to reach an agreement. Frankly, they want to reach an agreement more than I do."
Before Meloni's visit, Italian officials acknowledged that they had low expectations of reaching an agreement during Thursday's talks. US officials have indicated that most tariffs imposed on the EU will not be lifted, and that trade discussions earlier this week showed minimal progress.
In addition to the baseline tariffs, the USA has also imposed additional tariffs on Industries including Autos, Steel, and Aluminum. Approximately 10% of Italy's exports go to the USA, and some of its most important products, including Autos, Pharmaceuticals, and food and wine, will be severely impacted by these tariffs.
Besides Trade, Trump is also pressuring European security partners to increase military spending.
According to foreign media reports, Italy has recently begun to increase its defense spending. This historically "military under-spender" is expected to announce plans to reach NATO's 2% spending target, but this still falls far short of Trump’s preference of allocating 5% of GDP for defense spending, and unless significant adjustments to the budget are made, it is nearly impossible for Italy to achieve this goal.
She stated on Thursday: "As you know, Europe is committed to doing more," including efforts to "help member states increase defense spending."
Meloni will return to Rome, and as planned, she will host US Vice President Vance there on Friday, who has consistently held a hostile view toward Europe, most notably expressed in a speech he gave earlier this year at the Munich Security Conference, where he criticized European leaders for straying from democratic values.
Editor/Jeffy
