Diplomatic Visit: EU Trade Commissioner Journeys to Washington D.C. for Trade Negotiations - Trade commissioner from the EU travels to Washington amidst trade disputes
The ongoing tariff dispute between the European Union (EU) and the United States (US) has reached a critical point, with both parties hardening their stances on steel and aluminum products. Here's a summary of the key developments as of July 2025:
The Trump administration announced a significant increase in tariffs on all EU products, with a 30% tariff rate set to take effect from August 1. This decision follows the existing Section 232 measures, which have already imposed tariffs of up to 50% on steel and aluminum products from the EU, effective from June 4, 2025. These measures are designed to protect the US steel industry and prevent circumvention of restrictions.
In response, the European Commission has extended the suspension of its countermeasures (targeting US goods worth approximately €21 billion) until August 1, allowing for further negotiations. However, the EU is preparing to propose additional countermeasures, including those related to IEEPA tariffs imposed by the US.
The EU has also been conducting public consultations on potential additional countermeasures against US tariffs, not only on steel and aluminum but also on broader sectors like automotive and industrial machinery. The estimated impact of these potential tariffs on US imports is around €95 billion.
Former EU trade officials have criticized the US approach as coercive, urging the EU to activate its anti-coercion trade instruments to assert stronger countermeasures. The former EU trade chief described the US approach as "mafia-style extortion," signalling deep frustration on the EU side.
It's important to note that the EU has decided to refrain from imposing retaliatory tariffs at this time. If implemented, EU retaliatory tariffs would affect US goods worth around €370 billion.
The tariff for cars is set at a higher rate than the general tariff rate. Trump's tariff announcements have sparked a trade war with trading partners worldwide.
The EU Commissioner is heading to Washington to discuss the tariff dispute, although no specific details have been provided about this meeting.
Exemptions from the tariffs include medicines and pharmaceutical products. The specific US products included in the EU's retaliatory tariff lists are jeans, motorcycles, certain steel and aluminum products, and others.
The EU is also preparing a second list of retaliatory tariffs on US products worth around €72 billion. This development underscores the high stakes involved in the ongoing dispute between the two economic powerhouses. The current suspension of EU countermeasures expires on August 1, the same day new US tariffs take full effect, so significant escalations or breakthrough negotiations may be imminent.
- The Commission has also been consulted on the draft regulation on the implementation of the common fisheries policy, as the ongoing tariff dispute between the EU and the US, related to policy-and-legislation and politics, has resulted in the EU preparing a second list of retaliatory tariffs on US products, worth around €72 billion, under the category of general-news.
- In the context of war-and-conflicts metaphors being used to describe the escalating tariff dispute between the EU and the US, former EU trade officials have criticized the US approach as coercive and likened it to "mafia-style extortion," with the EU Commissioner heading to Washington to discuss the tariff dispute, while the tariff for cars is set at a higher rate than the general tariff rate, potentially sparking broader sectoral disagreements, such as in the automotive and industrial machinery sectors.
