Trade war between United States and European Union continues to grow. This comes on the heels of the US government’s announced plan to impose a similar 25% duty on aluminium, steel and automobile imports from the EU. This move has generated huge alarm bells among EU officials. They are now calling for a more vocal commitment from the US regarding anti-corruption talks.
The new tariffs come amidst an environment of already difficult and contentious trade relations. Together, they go after the metals and automotive sectors directly, while pursuing wider aims, such as dealing with overcapacities in the steel and aluminum industries. EU leaders have made it clear that constructive dialogue among all relevant stakeholders is needed to effectively meet these challenges.
The two parties have moved beyond a narrow focus on tariffs. They deserve credit for efforts to make supply chains more resilient in critical industries, including semiconductors and pharmaceuticals. These conversations help to strengthen economic relationships and reduce risks from global supply chain interruptions.
As complaints, the US has detailed a long laundry list of accusations. These problems cut across all sectors, but most notably in the sanitary and phytosanitary and digital sectors. This has raised alarm bells among EU representatives and caused them to double down on their intent to stick to rigid standards that they believe are untouchable.
“EU standards particularly as they relate to food, health and safety are sacrosanct,” – Olof Gill
As Gill underlined, “The EU is certainly showing leadership and taking steps. Now, the US needs to be very clear on where it stands. Indeed, his remarks speak to the mounting pressure upon the US to elucidate its aims in these negotiations.
As the negotiations are progressing, EU leaders have pointed to the need to tackle overcapacities in strategic sectors. The need for a collaborative approach has never been more urgent, as both sides seek to navigate the complexities of their trade relationship.
“We would need an additional level of engagement from the US to keep the ball rolling forward,” – Olof Gill
Despite these hurdles the EU is determined to work through solutions that will yield positive results for both economies. EU Trade Commissioner Olof Gill has been clear that dialogue is required. He is convinced that serious and sustainable collaboration is the key to addressing society’s most wicked challenges.
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