The European Union is racing to clinch trade deals with countries around the world in an effort to diversify away from an increasingly protectionist US as officials worry that the transatlantic relationship has been irreversibly damaged.The bloc’s chief trade negotiator, Maros Sefcovic, will travel to Washington on Monday to lobby for a reduction in the tariffs President Donald Trump imposed on €380 billion ($432 billion) of the bloc’s exports. In tandem with the talks, the EU is ramping up efforts to strike free-trade accords elsewhere, since officials think ties with the US won’t ever go back to the status quo, according to people familiar with the matter.The EU already has the largest network of trade agreements in the world, covering some 75 partners and more than €2 trillion in trade, according to data compiled by the bloc. But diversifying away from the US is no easy task — transatlantic trade in goods and services reached €1.6 trillion in 2023.“Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas,” European Commission President Ursula von der Leyen said in a Thursday statement, referring to the percentage of worldwide trade that doesn’t include the US.The commission, which handles trade matters for the EU, has in recent weeks been urging capitals to get on board with the bloc’s trade agenda and speed up the approval process for accords, said the people, who spoke on the condition of anonymity.Concluding trade deals and opening up new markets is a key element of the EU’s strategy to respond to Trump’s tariffs. Efforts to expand the EU’s web of agreements stalled in recent years mostly due to objections from member states such as France, which has a powerful agriculture industry.But Trump’s policies have spurred renewed impetus to diversify supply chains and access new markets. In recent months, the EU has moved trade talks forward with the United Arab Emirates, Malaysia, Indonesia, Thailand and India, among others. The disruption has also buoyed conversations between the EU and the UK over a deal to reset post-Brexit relations.Free-trade agreements account for about 45% of EU trade with outside countries and deals that were awaiting adoption or ratification as of last year would add more than €185 billion worth of trade to the bloc’s tally.In a further pivot to Asia, von der Leyen said on Thursday that the EU will explore closer cooperation with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a trade bloc that stretches from Australia to Canada. Trump pulled out of the partnership’s previous iteration in 2017.New Zealand Prime Minister Christopher Luxon has proposed using the accord as the basis for a wider agreement with the EU on a rules-based trading bloc.Driving the EU’s diversification push is the raft of tariffs Trump has announced since the start of his presidency, which are now hitting most countries. Last week, he announced a 20% “reciprocal” tariff on nearly all the bloc’s exports, which he subsequently delayed for 90 days, leaving a new 10% rate in place.The US has also imposed a 25% levy on EU steel and aluminum exports and a 25% levy on the bloc’s cars and some auto parts. Trump has also said he’ll announce additional tariffs on lumber, semiconductor chips and pharmaceutical products.Trump this week boosted the tariff rate on Chinese goods to 145%, raising concern in Europe that Beijing will divert its goods toward the bloc and flood the market with cheap products. In a call held earlier this week with Chinese Premier Li Qiang, von der Leyen discussed setting up a mechanism for tracking possible diversion and possible remedies.Von der Leyen and European Council President Antonio Costa, who coordinates meetings of EU leaders, will travel to Beijing in July for a summit.

Fonte notizia: The Economic Times