Transatlantic trade partners are negotiating to prevent a July 8th deadline from triggering a substantial increase in U.S. tariffs on EU goods, potentially reaching 50 percent on various sectors. High-level talks between President Trump and EU Commission President von der Leyen have urged negotiators to expedite a “good and fair deal.” The EU has firmly denied reports of accepting a 10 percent baseline tariff, emphasizing its opposition to the existing tariffs imposed by the U.S. Failure to reach an agreement would severely impact the €1.7 trillion transatlantic trade relationship.
Read More
In response to recent U.S. tariff increases, the EU reiterated its offer of a “zero-for-zero” tariff deal encompassing industrial goods like cars and chemicals. This offer, while excluding agricultural products and safety standards, aims to de-escalate the escalating trade war sparked by President Trump. The current situation has severely impacted global financial markets, causing significant losses. While the EU’s average tariffs on U.S. non-agricultural goods are low, the 10% tariff on American cars remains a point of contention.
Read More
In response to US tariffs, the EU initially mirrored American actions with equivalent levies. However, facing further threats targeting both tariffs and non-tariff barriers, the EU now plans a stronger counter-response. This strategy leverages the EU’s economic power, including its large market size and influence across various sectors. Potential targets for retaliatory measures include major US financial institutions and tech companies. The EU intends to employ a broader range of countermeasures beyond simple tariff matching.
Read More
The threatened re-imposition of steel and aluminum tariffs by the United States is expected to provoke a swift EU response. This action reignites a long-standing trade dispute, with the EU prepared to utilize various retaliatory measures, including WTO challenges and safeguard tariffs, as previous suspensions expire in March. France and Germany have already urged the EU to act decisively, emphasizing the need to protect European interests. The EU’s response is anticipated to be immediate and forceful.
Read More
John Q. Hosedrinker