The United States and the European Union (EU) need to “de-escalate” tensions and engage in negotiations to boost Europe’s sluggish growth, the International Monetary Fund’s (IMF) Europe director, Alfred Kammer, stated on Friday.
“In our discussions with European leaders, I haven’t sensed any difference in views regarding the importance of that relationship,” Kammer told reporters in Washington.
“An effort needs to be made to de-escalate and to negotiate a deal,” he added, expressing hope that the ongoing discussions would yield positive results.
Kammer’s comments were made during a press briefing as part of the World Bank and IMF’s Spring Meetings in Washington, which brought together the world’s finance ministers and central bankers. Many countries are looking to renegotiate their trade relationships with the United States, especially following recent tariff moves.
Earlier this month, US President Donald Trump imposed heavy tariffs on several countries, including a new 20 per cent tariff on the European Union. However, just days later, the US rolled back most of these tariffs to a “baseline” 10 per cent rate.
In addition to these general tariffs, the US has also introduced sector-specific levies, particularly in industries such as automobiles, steel, and aluminium.
Countries and blocs facing these higher tariffs have been given a 90-day period to reach an agreement, which will end in July, in an attempt to reduce trade barriers with the US.
It is the European Union, rather than individual member states, that has been tasked with negotiating the deal. However, European finance ministers in Washington have shared their views on the ongoing talks.
“We’re not going to hide the fact that we’re still a long way from an agreement,” said French economy minister Eric Lombard in an interview on Thursday.
At an IMF event later that day, German Finance Minister Joerg Kukies was more optimistic, expressing hope that a deal could be reached soon.
“We’re optimistic that it will work; the sooner, the better,” he said.
