International Decisions Regarding EU Foreign Policy Aren't Exclusively EU's Responsibility
In the tense and unresolved trade conflict between the United States and the European Union, the deadline for a new trade deal to be reached on July 9, 2025, is fast approaching. The U.S., under President Donald Trump, has threatened to impose steep tariffs of up to 50% on EU imports if no agreement is found, including the proposed 17% tariffs on EU agricultural exports.
Negotiations between the European Commission and the Trump administration, which began in mid-June, have yet to yield a definitive agreement. The European Commission initially proposed a zero-tariff agreement on industrial products and offered to buy strategic goods such as U.S. liquefied natural gas. However, it now seems they may accept a baseline 10% tariff on EU imports instead.
The division among EU member states is evident. While Germany and Italy appear to be in favour of accepting a 10% tariff baseline, Ireland and France remain more skeptical. French President Emmanuel Macron has emphasised the need for compensation if a 10% tariff is maintained, stating that tariffs should be matched or compensated equally.
President Trump has made it clear that he wants broad exemptions from regulations from the EU and has also demanded that Brussels reduce its trade surplus with the United States. The threat of 17% tariffs on EU agricultural exports was made just days before the July 9 deadline, adding to the pressure on the EU to provide concessions.
The European Commission Trade Commissioner Maroš Šefčovič received a warning from President Trump on Thursday in Washington. Despite the looming threat, European Commission President Ursula von der Leyen expressed hope for a "principle agreement" on Thursday. She also reiterated her hope for continued talks towards a final agreement.
The broader trade issues, including the EU's Digital Services Tax and the trade surplus, remain contentious and unresolved. The U.S. views the Digital Services Tax as discriminatory against American tech companies and could respond with retaliatory tariffs if it moves forward.
As the deadline nears, the trade conflict remains in a precarious phase, with the potential for escalation if compromises are not reached. Washington is pressuring countries to agree on binding deals by Trump's set deadline, but the future of the trade relationship between the U.S. and the EU remains uncertain.
In the realm of politics and policy-and-legislation, the ongoing war-and-conflicts surrounding the trade dispute between the United States and the European Union continues to intensify, with the threat of steep tariffs looming over EU imports should no agreement be reached. The disagreements and division among EU member states, as exemplified by France's demand for compensation and Germany's acceptance of a 10% tariff baseline, further complicate general-news surrounding the issue.
