Trump shifts tariffs to EU goods: Europe breathes up!

Trump shifts tariffs to EU goods: Europe breathes up!

Österreich - President Donald Trump has announced that it will initially suspend the introduction of customs measures to EU goods until July 9th. This was done in a phone call with the President of the EU Commission, Ursula von der Leyen, who described the conversation as "good". According to Trump, Leyen asked for this extension of the deadline in order to be able to start serious negotiations on trade conflicts. Until July 9th, the two sides remain progress after the 90-day period stipulated by Trump, which will end on July 9th.

The US President had previously threatened with penalty tariffs of 50 percent, which would be significantly above the current customs rate of 10 percent for many products. Customs of 25 percent are already available for cars and aluminum. Trump justified his threat of stuck negotiations and was not very compromising in this context. For its part, the EU considers the US tariffs unjustified and has already expected to prepare counter-tariffs in the event that the situation does not improve. Angela Merkel, Germany's Chancellor, supports the demands for an agreement. German companies in particular are now looking for alternative sales markets due to the tense US customs policy.

customs policy and possible reactions of the EU

The EU is preparing to introduce special tariffs for US exports worth up to 95 billion euros. These tariffs could affect industrial and agricultural products such as cars, sweet potatoes and whiskey. The EU wants to show that it is ready to act against the self -placed tariffs of the United States, which are considered unjustified and incompatible with the rules of the World Trade Organization (WTO). In order to increase the pressure on the United States, the EU has also taken into account permission to restrictions on export, which could affect products worth 4.4 billion euros, including steel scrap and chemical products. The talks are necessary according to the Leyen to counter a further escalation of customs policy.

The European Commission also launched a public consultation on the US imports to determine possible countermeasures and to evaluate the effects of tariffs on the economy. The consultation runs until June 10, and affected companies and citizens are asked to express their opinions. Maroš Šefčovič, the EU trade commissioner, has emphasized that the Commission wants to monitor developments and strive for solutions that are advantageous for both sides. If the conflict continues to escalate, the EU plans to initiate a procedure against the USA at the WTO.

The pressure on the US administration grows, because many companies in Europe are severely affected by the current situation. In Austria, for example, Minister of Economics and the Industrial Association have called for Europe to respond to Trump's demands. The American market remains of great importance for the European economy, and reluctant tariffs could significantly burden the economic environment of both regions.

The talks between the EU and the USA are therefore under pressure to find solutions. The willingness to cooperate is noticeable on both sides, but remains shaped by numerous economic and political challenges.