Temporary suspension of US tariffs paves way for talks, says Polish FinMin
As US President Donald Trump has temporarily suspended the recently imposed 'reciprocal' tariffs for a 90-day period, this timeframe should be used for negotiations, the finance minister has said.
Andrzej Domanski said on Thursday that the recent announcement regarding the sudden rollback of tariffs was "positive news," demonstrating the intention of the White House to "de-escalate the current situation."
"Earlier, we observed a significant market reaction to the tariff announcement: stock prices declined, commodity values dropped and concerns about a potential recession in the US intensified," said the minister while appearing on the Polish private television channel Polsat News. "It is encouraging that the US administration has allowed a 90-day period for negotiations."
Domanski's comments come a day after President Trump's decision to roll back tariffs for most countries, with the exception of China, where duties have now risen to 125 percent.
Last Wednesday, the American president introduced extensive new tariffs, which he labelled 'reciprocal,' with rates differing by region. For instance, the European Union faced a 25-percent tariff, Taiwan was subjected to a 32-percent tariff on most exports to the US, and China initially faced duties of 104 percent. The announcement detailed various levies with differing percentages for each trading partner, alongside a baseline tariff of 10 percent.
"When it comes to trade policy, this is something that is the responsibility of the European Commission; however, we will continue to emphasise that the interests of Polish citizens, and by extension, EU citizens, are of utmost importance," said the minister. "Our objective should be to avoid escalation and instead seek the most beneficial solutions for our economy."
According to Domanski, the automotive sector is likely to be one of the most affected by Trump's tariffs, particularly manufacturers of vehicle parts. "This is why Prime Minister Donald Tusk has met with representatives from these industries," he added.
Regarding the potential impact of US tariffs on grocery prices in the EU, the minister said that American food products were expected to become more expensive. "There is no need to be concerned about our (EU - PAP) prices."
"Nevertheless, if the US decides to implement tariffs on China or Vietnam, it could lead to secondary effects, and goods from these countries may seek alternative markets, potentially flooding the European market," Domanski said. "This situation could threaten European manufacturers; however, from a pricing standpoint, it is expected to push prices down." (PAP)
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