Trump threatened to impose a 25% tariff on imports from the European Union. In response, EU Finance Minister Lombard stated that if the U.S. follows through on these tariff increases, the EU will retaliate similarly. Speaking at the G20 finance ministers meeting in Cape Town, Lombard emphasized the need to protect the EU’s interests, even if it may not be in everyone’s best interest. Regarding Trump’s claim that the EU was established to disadvantage the U.S., Lombard affirmed that the United States remains a strong ally.
Lombard highlighted the deep historical ties and interconnected economies of the transatlantic partnership, stating that there is no viable trade alternative for either the U.S. or the EU. He emphasized the mutual benefits of continued cooperation. During discussions with U.S. Treasury Secretary Scott Bessent, G7 diplomats warned that tariff wars can lead to inflation and economic downturns. Although Bessent participated in G7 meetings remotely and did not attend the G20 talks in Cape Town, he confirmed that negotiations would begin on April 2, with the EU aiming for a fair agreement.
Lombard asserted Europe’s unity in the face of Trump’s recent threats, which he characterized as unfounded accusations of the EU taking advantage of the U.S., while noting that it remains uncertain whether any tariff increases will actually be implemented.
During discussions in Washington on Monday, U.S. Treasury Secretary Bessent expressed a willingness to engage in dialogue on a range of topics, which Lombard interpreted as an openness to conversation. He noted that the U.S. and EU are each other’s largest trading partners and significant investors, with intertwined interests in industries like aerospace and automotive.
Taxation, especially concerning the ultra-wealthy, was a key focus at the G20 finance ministers meeting in Cape Town, where Lombard highlighted France’s desire for progress in this area, even though concrete measures are still far off. Additionally, the ministers addressed the debt crisis facing African countries, with Lombard mentioning efforts to assist Zambia and Ghana, and ongoing work with Ethiopia. He expressed hope for continued progress in supporting heavily indebted nations.