Brussels, 2 July 2025 – The President of the European Council, António Costa, believes that the NATO agreement should have a positive effect on trade negotiations between the EU and the United States and hopes that these will be concluded “quickly and well”.
In an interview with Lusa about his first six months as President of the European Council, which brings together the heads of state and government of the 27 member states of the European Union, the Portuguese politician argued that "certainty is essential for the economy", which is why it is essential that "we quickly establish certainty" regarding the future of trade relations between the two major economic partners.
Trade tensions between Brussels and Washington stem from Donald Trump’s announcements of 25 per cent tariffs on European steel, aluminium and cars and 20% reciprocal tariffs on the EU, the latter of which the administration has since suspended for 90 days. This deadline expires on 9 July, and the Commissioner for Trade, Slovak Maroš Šefčovič, travelled to the United States this week for talks.
For António Costa, “it is clear that the agreement that the Europeans have reached with the Americans within NATO, resolving even the main problem that existed in relations between them (...) can only have a positive influence on trade negotiations”.
He emphasises: “I would even say that the logical consequence of the agreement reached in NATO is that it will have a positive effect on trade negotiations.”
On Thursday, European Commission President Ursula von der Leyen told the United States that the EU is preparing to pursue an alternative course if negotiators fail to secure a “satisfactory agreement”, promising to defend European interests.
Hours later, Donald Trump said that the European Union "acts uncooperatively" by imposing "unjust taxes" on US companies, but added that "they will soon learn to act more cooperatively."
António Costa prefers to focus on what he considers essential—the volume of trade relations between the United States and Europe, which represent 30% of international trade and 40% of global GDP—and instead defers from commenting on the US president’s statements.
“Therefore, anything that affects these trade relations has a significantly positive effect on the US economy, a significantly positive effect on the European economy and a significantly positive effect on the global economy,” he said.
According to Costa, the European Union defends and has proposed zero tariffs to the United States, considering that these mean taxes paid by consumers and therefore have an impact on increasing inflation.
However, the US administration views tariffs as a beneficial economic policy tool and holds a different stance.
"Everyone thinks the opposite, but this is the view of the US administration, and we must strive to control the impact on the global economy, the European economy and also the US economy. We are negotiating to minimise the effects of this view," said the President of the European Council.
The European politician acknowledges that, in the worst-case scenario, negotiators could still postpone the talks, but he believes that this would be “prolonging the uncertainty. Anything we can resolve as quickly as possible resolves the uncertainty, and it would be desirable for us to reach something that is positive for both sides, or at least as positive as possible for both sides”.
As for NATO, António Costa preferred to focus on last week’s summit, which resolved any doubts about its existence, and he chose not to address the controversial statements made by Secretary General Mark Rute, who called President Donald Trump "daddy" and promised that "Europeans would pay big time."
“After several months of discussions about the future of the transatlantic alliance, all partners expressed their willingness to continue together, strengthen our relationship and agreed on new objectives to reinforce the Atlantic Alliance which, until proven otherwise, is the most effective collective defence force we have on a global scale,” he said.
As for the United States, he says: “They were very clear, if you like, they renewed their vows precisely at this meeting of the Atlantic Alliance.”
António Costa began his two-and-a-half-year term as President of the European Council on 1 December 2024, becoming the first socialist and the first Portuguese to hold this position.
LM/ADB // ADB.
Lusa
