EU fights for trade agreement – ​​Trump threatens 50% tariffs!

EU fights for trade agreement – ​​Trump threatens 50% tariffs!

Transatlantic trade relations are facing a significant shake-up as the EU is determined to push forward a trade deal with the US. EU Trade Commissioner Maros Sefcovic recently reiterated the EU's commitment to such an agreement, based on the principle of respect. This statement came after constructive discussions with US officials, including US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, which Sefcovic described as “good”. These talks come in the context of a tense foreign trade situation, especially after US President Donald Trump announced an extension until July 9th for possible new tariffs on European goods. Sefcovic also stressed that the EU is working on an agreement “in good faith” and is ready to defend its interests, despite the uncertain political climate.

President Trump has once again brought existing tariffs, which include a 25 percent rate on cars, steel and aluminum, into focus. These tariffs affect European goods worth around 370 billion euros. Trump recently threatened to increase the general tariff rate on imports from the EU to 50 percent. This scenario would mean a dramatic increase in the tariff, as the current surcharge is already at 10 percent. If Trump's plans for the new tariffs come into effect at the end of June as announced, the economic impact could increase significantly in both the US and Europe. Trump's tariffs could have far-reaching consequences for numerous countries, including the EU, and significantly disrupt global supply chains, as has been observed since he took office in January 2021.

Economic consequences and EU reactions

The announced tariff measures not only affect European industry, but could also have a significant impact on large companies. Apple estimates possible additional costs due to tariffs to be $900 million in the current quarter alone. After Trump made these tariff claims public, stock prices in both the US and Europe fell, reflecting uncertainty about future trade conditions.

In the wake of these developments, the EU has already prepared counter-tariffs on US products worth almost 100 billion euros if negotiations fail. These measures aim to protect European businesses and consumers from the impact of increased US tariffs and strengthen the EU's position in upcoming negotiations. Leading MEPs have called for further expansion of transatlantic cooperation to address common challenges and stabilize trade relations. The Polish Minister for European Affairs, Adam Szłapka, emphasized the advantages of open and fair international trade.

In summary, the EU is committed to sticking to a trade agreement with the US despite the current challenges. The political discussions and the preparation for possible trade measures are running in parallel in order to find a constructive solution. This issue remains central to future economic cooperation between the two continents, as a potential trade agreement would be of great importance for both European and American markets.

For more information on developments in transatlantic relations, read more at Vienna.at, Yahoo Finance and Europarl.eu.