Trump signals agreement in the EU trade dispute-remain tariffs!

Trump signals agreement in the EU trade dispute-remain tariffs!

President Donald Trump spoke in a recent interview about the ongoing trade conflict with the European Union (EU). He initially described the EU as "brutal", but noticed a willingness to negotiate that he has found in the past few days. Trump explained that there is progress in a possible trade agreement and that EU trade commissioner Maroš Šefčovič had traveled to Washington to have talks. He also announced that he will send a letter to the EU in two days to intensify the negotiations. "A letter means a deal," emphasized Trump, who had already made calls with EU Commission President Ursula von der Leyen and described the negotiations as "very nice", as Vol.at reported.

Although Trump sees positive signs for a possible deal, he does not exclude the introduction of further punitive tariffs. In the coming days, according to ZDF , new customs regulations for a number of smaller countries that could include import levies between ten and 15 percent. However, precise information about the affected countries or products remain vague. At the same time, there are efforts to conclude a trade agreement with India that is "shortly before the end", while Canada has no agreement in the near future.

price increases and economic effects

On Monday, Trump informed 14 countries about massive customs surcharges between 25 and 40 percent, which should come into force from August 1, 2025. In this context, extra oils are also planned for specific industry imports that could be up to 200 percent for medicines and 50 percent on copper imports. Trump has already introduced tariffs on cars as well as steel and aluminum, with the aim of correcting commercial geriac weights and promoting US production. The EU reacts optimistically to the possibilities of an agreement, even if the tensions between the two sides have recently risen again. According to Süddeutscher Zeitung The EU is under pressure to find a solution promptly to continue to minimize the negative economic consequences.

The effects of the customs dispute are already noticeable. German exports to the United States fell by 7.7 percent to 12.1 billion euros in May, and the President of the BGA Export Association, Dirk Jandura, commented on possible recession risks in the United States. The EU's trade surplus in the event of goods was already 156.6 billion euros in 2023, which underlines the need for an agreement.

The pressure is heading because the 90-day break ends in the trade conflict between the EU and the USA. Brussels has initially postponed retaliation, while negotiations are gaining intensity. The coming weeks could be decisive for whether the lengthy conflict can be steered in a positive direction or whether the economy of both regions will continue to suffer from the increased customs load.