The European Union is currently deep in negotiations on an overall tariff deal in Brussels and other EU capitals. Should ongoing negotiations with the United States fail, this package could create tariffs on €95 billion of U.S. products. The two sides swapped letters with each other earlier last week outlining their proposals. Negotiations have since come to a standstill, causing alarm among many advocates about future trade relations.
U.S. officials have blasted the European proposal as “unilateral,” further inflaming tensions between the two parties. Here’s what former President Donald Trump had to say on the unfolding situation on his social media platform, Truth. He underscored that negotiations with the European Union are “at an end.” His remarks highlight the wide gulf between Republicans and Democrats as they try to strike an elusive deal.
As it stands, the United States has a 25% tariff on EU steel and aluminum. There’s more. Add to that a 25% tariff on EU autos. On top of that, there is a 10% tariff on all EU imports. The EU has already shown its willingness to respond in kind with countermeasures should the U.S. continue these tariffs. None was more audacious than his original 50% tariff on the European Union. If enacted into law, it would go into effect starting June 1, 2025, focusing first on a test list of €21 billion worth of U.S. products. This list was indeed previously put on hold after Trump announced a 90-day freeze through July 9.
Then on Friday afternoon, EU Trade Commissioner Maroš Šefčovič called with U.S. counterpart Howard Lutnick. Sadly, their attempt at bridging the concern gap only raised more questions. An EU official called the U.S. unrealistic and unfair, deepening the toxicity of the negotiating milieu.
“Our discussions with them [the EU] are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.” – Donald Trump
Though these difficulties are disappointing, the EU is still committed to seeking out a way forward. Agriculture is politically sensitive territory. Gill for his part confirmed that the “zero-for-zero” proposal remains in play and on the table.
“As regards the zero-for-zero- that is very much still on the table,” – Olof Gill
Gill was heartened by the process of negotiation. He continued, “We think that’s a great fundamentally strong launching pad for a good negotiation that could produce wins on both sides of the Atlantic.
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