Heads of State Urgently Pressure von der Leyen to Strike a Deal with Trump: Auto and Steel Sectors at Stake
EU Leaders Engage in Trade Dispute with Trump at Summit - Leaders of European Union member states negotiate solutions for trade conflicts with U.S. President Trump in a summit discussion regarding customs issues
Keep your eyes peeled, folks! The heads of state are putting the pressure on Ursula von der Leyen, urging her to reach a speedy agreement with the Yanks before time runs out—less than two weeks to be exact, says Merz after the summit to the press. The countdown for negotiations, set by Trump, winds up on July 9, with the European Commission in the driver's seat for negotiations.
Emmanuel Macron hasn't minced his words either: "We need a swift conclusion of an agreement, but not at any cost." However, he concedes, "we won't surrender to American demands."
Merz softened his criticism about the Commission's negotiations tactics being "too complex." The Chancellor recently demanded a basic agreement for the auto industry, chemical and pharmaceutical companies, and steel and aluminum exports at an event of the Federation of German Industries (BDI).
"I didn't criticize the Commission, I merely stressed that in the remaining time, we can't finalize a sophisticated trade agreement," Merz ensures.
The auto industry and steel sector are key concerns as Trump's tariffs have left them reeling, with a hefty 25% rate applying. EU diplomats are discussing a deal akin to Swiss cheese, where general US tariffs of around ten percent could remain in place, if exceptions apply for vital sectors such as the auto industry and steel.
On Thursday, Commission President von der Leyen updated the heads of state on the status of the talks, "We've received the latest US document for further negotiations, and we're currently evaluating it."
Donald Trump's protectionist tariff policies have kicked off a trade spat with trading partners worldwide. In early April, Trump slapped high additional tariffs on numerous countries. These tariffs were initially set to 10%, but they could double or even quintuple by July 9, as Trump has threatened.
Trump also has his sights set on a number of European consumer protection regulations and rules for large digital companies. The Commission has made it clear that they won't be amending EU laws. However, the Commission aims to demonstrate their willingness to engage in dialogue with Washington.
If these talks with the US fall through, the EU keeps its counter-tariffs ready and waiting. These include a list of tariffs on items such as jeans, aluminum products, and motorcycles, which the EU countries have already approved. Additional increases are in the pipeline, potentially affecting US goods worth around 100 billion euros in total. For comparison, the US tariffs could affect European goods worth a staggering 370 billion euros.
- EU
- Trading Partners
- Donald Trump
- Trade Dispute
- Trade War
- Friedrich Merz
- Emmanuel Macron
- US-EU Trade Negotiations
- Steel
- EU Commission
- Brussels
- USA
- Ursula von der Leyen
- CDU
- Federation of German Industries
- BDI
- The heads of state, including Emmanuel Macron and Friedrich Merz, are urgently pressuring Ursula von der Leyen, the EU Commission President, to negotiate a quick deal with Donald Trump to avoid US tariffs on key EU sectors like the auto industry and steel.
- The EU Commission in Brussels is currently evaluating the latest US document for negotiations, and is discussing a potential trade deal with the US that could leave general US tariffs in place but offer exceptions for vital sectors like the auto industry and steel.
