EU trade leader advocates for 'reciprocal respect' subsequent to Trump's tariff threats
The EU and the US have temporarily de-escalated their trade disagreement following threats of tariffs from President Donald Trump. Originally, Trump had planned to implement a 50% tariff on all EU goods exported to the US as early as June 1. However, after a call with US Trade Representative Robert Lighthizer and Commerce Secretary Gina Raimondo, European Union Trade Commissioner Maros Sefcovic stated that the bloc is "fully engaged" and "committed to securing a deal that works for both parties."
Sefcovic emphasized that EU-US trade should be based on mutual respect, not threats. After the conversation, he wrote on social media that the 27-member union stands ready to defend its interests while remaining willing to negotiate constructively.
Trump's tariff threats sent shares falling in the US, EU, and UK. In response, the Irish Premier, Micheal Martin, expressed surprise at the move, as the EU had been engaging in "good faith" negotiations with the US to agree on a trade deal. Martin warned that such high tariffs could be extremely disruptive to the global economy.
In a further escalation, Trump also announced he would be imposing a 25% tariff on all Apple iPhones manufactured outside the US and threatened similar tariffs on other foreign-manufactured smartphones. If the tariffs were imposed, Martin warned of the potential consequences.
The new deadlines for potential tariff implementation have not been definitively set, but Ursula von der Leyen, president of the European Commission, described her conversation with Trump as "good" and expressed optimism about the prospect of successful negotiations before any new deadlines arrive.
[1] The current extension grants the EU an additional time to finalize an agreement to avoid the implementation of Trump's extensive tariffs, pushing the potential start date back to July 9, 2025.
[1] The extension in the EU-US trade disagreement allows both parties more time for policy-and-legislation negotiations, with the potential tariff implementation now set for July 9, 2025.
[2] As global markets react to political tensions, war-and-conflicts can have indirect impacts on trade and economy, such as the market drops seen in the US, EU, and UK following Trump's tariff threats.
[3] General news has been increasingly focusing on the economic implications of foreign policy decisions, including how the imposition of tariffs on Apple iPhones and other smartphones could impact market competition and overall economy.
