EU Costa Tells US ‘Not Right Time’ To Create Trade Tensions, Urges Focus On Shared Defense Responsibility

European Council President Antonio Costa on Monday called for deprioritizing trade and shifting the focus to more significant matters, such as the region’s defence.

According to a Reuters report, Costa said, “The main issue between Europe and the United States is precisely about European defence, and we should focus on.”

“Because this is the main issue, we should avoid introducing other issues that undermine our economic capacity to assume greater responsibility on our own defence."

The EU official made the comments while speaking to reporters along with EU Commission President Ursula von der Leyen ahead of the G7 meeting in the Canadian Rockies.

After recommending the imposition of a 50% tariff on EU exports in May, President Trump reversed course and suspended the implementation until July 9. He then clarified that the reprieve was in response to Von der Leyen's request.

The EU chief welcomed the move and expressed the 27-nation bloc’s willingness to advance talks swiftly and decisively. 

While speaking on Monday, Von der Leyen confirmed that the U.S.-EU talks were now focused on details but said there is no guarantee that a deal would be clinched. 

"That's why this is not the right moment to create uncertainty on economics,” said Costa. “It is not the right moment to create problems on trade, because we need to strengthen our economic basis.”

The official also said the two days of the G7 gatherings will provide an opportunity to discuss problems between allies and friends.

The SPDR S&P 500 ETF (SPY) gained 2.17% for the year, while the iShares Europe ETF (IEV) gained about 22%.

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