Podcast Summary: Bloomberg Talks

Episode: EU Trade Commissioner Maroš Šefčovič Talks International Trade
Date: December 15, 2025
Host: Bloomberg
Guest: Maroš Šefčovič, European Union Trade Commissioner

Overview

This episode features an in-depth conversation with EU Trade Commissioner Maroš Šefčovič, delving into the current state of global trade relations involving the European Union. Key topics include US-EU trade negotiations—particularly steel and aluminum tariffs—relations and supply chain issues with China, the EU’s approach to rare earth mineral licensing, the persistent trade deficit with China, and the pending EU-MERCOSUR trade agreement. Šefčovič offers candid assessments of ongoing challenges and negotiations, outlining both successes and sticking points in Europe’s international trade agenda.

Key Discussion Points and Insights

1. US-EU Steel and Aluminum Tariffs

• Background: The two sides are in ongoing talks regarding longstanding tariffs on steel and aluminum.
• Status: No concrete progress yet, but frequent communication is ongoing.
• Šefčovič:
  • “We are not each other's problem… What unites us is that we really need to take care of all the capacities which are destroying, you know, the steel production in US but also in the EU.” (00:58)
  • EU has adopted safeguards against third-country steel imports, mirroring US measures.
  • Proposal to build a “ring of friends” with mutual free trade in certain goods.
  • Machinery exports are a sticking point: “If America wants to reindustrialize, they need machines. We produce the machines. We are ready to send them the machines.” (01:58)
• Interviewer: The US is linking progress on steel to digital industry regulations, which are seen as non-tariff barriers.

2. Regulation, Digital Industry, and Non-Tariff Barriers

• US Position: Wants the EU to relax regulations that ostensibly target US tech firms.
• Šefčovič:
  • Firm on upholding EU's legislative process and tax sovereignty.
  • “Our regulation is adopted democratically… we are of course going to protect our tax sovereignty.” (03:13)
  • Assures the US that investigations are not aimed exclusively at American companies.
  • Cites complaints from US companies operating in the EU as often prompting regulatory action.
  • Suggests willingness to use settlements rather than fines, when appropriate.

3. Critical Minerals and EU-China Relations

• Rare Earth Minerals:
  • EU is seeking general licenses from China similar to those obtained by the US, to enable smoother access to rare earths.
  • “We are getting initial reports from our industry that they are getting these general licenses, but we need… more granular information.” (04:42)
  • Dialogue with Chinese officials proves healthy, but process remains somewhat opaque.
• Supply Chain Managed Risks:
  • Established a “hotline” with China for priority cases, given frequent industry complaints about access to permanent magnets, legacy chips, etc.
  • Šefčovič urges industry to prepare for continued instability:
    • “You have to be prepared to pay security premium, we have to stockpile, we have to diversify because we learned the hard way how the dependencies are costly.” (06:40)

4. EU Trade Deficit with China

• The Problem:
  • The trade deficit is €300 billion—“way too high,” says Šefčovič, and unsustainable.
  • “We will fight tooth and nail for European jobs and European companies.” (07:32)
• EU Measures:
  • Established import surveillance task force for real-time monitoring (biweekly) of imports.
  • Prioritizes “fair treatment” of European companies in China, genuine investment and job creation within the EU over forced tech transfers.
• Future Actions:
  • May resort to stronger anti-coercion mechanisms if softer measures don’t improve the situation.
  • “What would be very important… is that the tendency and I would say engagement with us to address these issues which we are raising.” (08:37)

5. EU-MERCOSUR Trade Deal

• Status:
  • The final agreement—after 25 years in the making—is at a critical juncture and not yet a done deal.
  • Šefčovič expresses optimism:
    • “To end this turbulent year… with the biggest free trade agreement ever signed, I think would be a positive conclusion.” (09:43)
• Key Points:
  • Would open South American markets to the EU and facilitate access to critical raw materials.
  • A net positive for both European exporters and agricultural/farming sectors after addressing concerns.
• If Not Signed Now:
  • Šefčovič remains hopeful:
    • “I would never accept such a good deal… is dead because it’s just simply too good for our citizens and too good for our businesses.” (10:57)

Notable Quotes and Memorable Moments

• On US-EU Steel Disputes:

  • “We are not each other's problem… What unites us is that we really need to take care of [global] overcapacities.” (00:58)

• On Tech Regulation:

  • “Our regulation is adopted democratically… We are of course going to protect our tax sovereignty.” (03:13)

• On De-risking Supply Chains:

  • “You have to be prepared to pay security premium, we have to stockpile, we have to diversify because we learned the hard way how the dependencies are costly.” (06:40)

• On the Trade Deficit with China:

  • “The deficit of 300 billion is way too high. We will fight tooth and nail for European jobs and European companies.” (07:32)

• On the Prospects of the MERCOSUR Deal:

  • “To end this turbulent year… with the biggest free trade agreement ever signed, I think would be a positive conclusion [for the EU].” (09:43)
  • “I would never accept such a good deal… is dead because it’s just simply too good for our citizens and too good for our businesses.” (10:57)

Segment Timestamps

• [00:34] — Introduction of Maroš Šefčovič; start of US-EU steel and aluminum tariff discussion
• [02:46] — Digital industry regulation and US non-tariff barriers
• [04:29] — Rare earth minerals, EU-China licensing
• [05:43] — Progress on structure/governance of EU-China minerals access
• [07:05] — EU trade imbalance with China, task force monitoring
• [09:31] — MERCOSUR trade deal, prospects for signing
• [10:46] — Will MERCOSUR be “dead” if not signed soon?
• [11:11] — (End of main content)

Tone and Final Thoughts

Šefčovič remains pragmatic but optimistic throughout, mixing diplomatic caution with a sense of urgency—especially regarding de-risking supply chains and enforcing fair trading practices. While acknowledging complexities and unfinished business, he underscores the EU’s commitment to protecting its industries, diversifying critical imports, and securing high-value trade agreements.