BRUSSELS (AN) – The European Union is strategically reinforcing its global trade partnerships, a move underscored by European Commission President Ursula von der Leyen's meeting with Indonesian President Prabowo Subianto.
Their discussions led to a breakthrough agreement on Sunday to proceed with a comprehensive trade deal between Brussels and Jakarta, bringing two of the world's biggest economies closer together to reduce tariffs at a time when the United States is poised to impose significant duties on both the E.U. and Indonesia.
"The agreement will open new markets and create more opportunities for our businesses," said von der Leyen. "It will also help strengthen the supply chains of critical raw materials, essential for Europe's clean tech and steel industry. I now look forward to its swift conclusion."
Subianto called it an important moment that for Indonesia represents fairness, respect, and building a strong future together. "After many years of hard work, we have agreed to move forward," he said. "The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals. We are ready to finalize it soon, in a way that benefits both our peoples.”
This push for deeper bilateral ties is a sign the United States' trading partners are further banding together to cut their dependence on Washington, following the Trump administration's formal notification on Friday of incoming 30% U.S. tariffs on E.U. exports, effective Aug. 1.
U.S. President Donald Trump publicly confirmed these measures via social media on Saturday, simultaneously announcing similar or higher duties for Mexico, Canada, and a roster of other nations, intensifying global trade tensions.
E.U. ambassadors were convening in Brussels to deliberate their collective response. The bloc has a €21 billion retaliatory tariff package at its disposal, currently suspended but set to activate on early Tuesday unless otherwise determined by policymakers. Pressure is mounting within the European Parliament for robust countermeasures.
Seeking 'rules-based international trade'
Von der Leyen said imposing 30% tariffs on E.U. exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic. The E.U. is ready to work towards an agreement by Aug. 1, she said, but it will "take all necessary steps to safeguard E.U. interests, including the adoption of proportionate countermeasures if required."
She emphasized that "few economies in the world match the European Union's level of openness and adherence to fair trading practices," and the E.U. has "consistently prioritized a negotiated solution with the U.S., reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership."
Brando Benifei, who chairs the E.U. delegation for relations with the U.S., has called for immediate retaliation and preparations for further assertive action by the Aug. 1 deadline. António Costa, president of the European Council, reiterated the E.U.'s commitment to "rules-based international trade" on social media. He emphasized the bloc's resolve to "continue to build strong trade partnerships worldwide," a directive that is now actively shaping EU foreign economic policy.
The E.U.'s strategy extends beyond a reactive stance. It reflects a proactive reorientation towards diversifying trade relationships, aiming to mitigate vulnerabilities to unilateral actions by major trading partners.
The E.U. has in recent months accelerated efforts to forge new trade pacts and strengthen existing ones, including a notable rapprochement with Canada and the United Kingdom, alongside deepened economic ties with India, South Africa, and various nations across South America and Asia. Discussions are also underway regarding the establishment of trade structures that would bypass both the U.S. and China, aiming to bolster the E.U.'s strategic autonomy.
The E.U.'s free trade agreement with Indonesia would serve as a key illustration of this strategic shift. Indonesian Minister for Economic Affairs Airlangga Hartarto indicated that while Jakarta hopes to resolve its trade disputes with Washington, the E.U. deal offers a critical alternative.
He noted that once ratified, the pact would reduce most tariffs between the E.U. and Indonesia to "close to zero," providing a vital market for Indonesian exports and potentially mitigating job losses from prospective U.S. tariffs.
