EU failed to propose a fair trade agreement, according to Trump.
Unleashing the Trade War:
In the realm of international trade, things are heating up between the US and the EU. Speaking to reporters on Air Force One, Trump stated, "We're talking, but I don't feel they're offering a fair deal yet." He added, "We'll either make a good deal or they'll pay whatever we say they will pay."
Trump's presidency sent shockwaves through the global economic order when he accused trading partners of unfair practices and imposed hefty tariffs. A 10% tariff on most US trading partners and steep individual rates on numerous economies, like India and the EU, followed suit. However, these rates were promptly paused. The deadline for the suspension of these higher duties is fast approaching on July 9, but the White House has hinted at extending the deadline for nations engaging in productive negotiations.
Trade tensions have escalated further with additional sector-specific levies on cars, steel, and aluminum, causing strain for several trading partners, including the EU. Mere days after the G7 summit in Canada, where world leaders pleaded with Trump to abandon his trade war for the sake of global economic stability, Trump and EU Commission Chief Ursula von der Leyen held a brief, intense meeting on the sidelines.
According to von der Leyen, the discussion was "good and intensive," yet complex. She confirmed that negotiations between the US and Europe were ongoing, even continuing on the sidedlines of the G7 on Tuesday, and both sides were working diligently to reach an agreement before the July deadline. However, Trump has been vocal about the EU's trade barriers and the resulting trade deficit between the two powers. The EU disputes the calculation of the deficit and emphasizes its own surplus in services.
As of now, the US imposes a 25% tariff on EU aluminum, steel, and cars, and a 10% tariff on all other EU imports. In response, the EU has launched public consultations on potential countermeasures to US automotive, reciprocal, and aluminum tariffs, with some tariff threats and delays persisting into mid-2025. This suggests that tensions remain at a peak, and negotiations have yet to produce a resolution[1][2].
In the realms of politics and policy-and-legislation, the ongoing war-and-conflicts over international trade between the US and the EU, particularly regarding tariffs, continues to cause general-news headlines. Talks of extending the deadline for the suspension of these tariffs call for intense negotiations, as the July 9 deadline inches closer[3]. Meanwhile, crime-and-justice issues occur as the EU contemplates potential countermeasures to the US tariffs, with some threats and delays looming into mid-2025[4].
