This article discusses the escalating trade dispute between the european Union (EU) and the United States, especially in the context of potential new tariffs.Here’s a breakdown of the key points:
The Core conflict:
US Tariffs: The US, under President Trump, is threatening to impose 30% tariffs on EU goods starting August 1st. This is a significant escalation and has disrupted ongoing trade negotiations.
EU Counter-Tariffs: In response, the EU has prepared a package of retaliatory tariffs.Initially proposed at €95 billion worth of US trade, this has been reduced to €72 billion after member states lobbied to remove certain products.
Key Developments and EU Actions:
EU’s Revised Counter-Tariff Package: The EU’s €72 billion package is a response to the US threats. It’s crucial to note that this is in addition to an existing €21 billion package of counter-tariffs on US soybeans, motorbikes, and orange juice, which is ready to be implemented if talks fail.
Lobbying and Product Removals: Several EU member states have successfully lobbied to have specific products removed from the proposed counter-tariff lists. This includes:
US thoroughbred horses (lobbied by Ireland).
US bourbon, wine, and dairy products (lobbied by Ireland, Italy, and France from the first set of proposed counter-tariffs).
The number of chemical and electrical products subject to tariffs has also been reduced.
EU’s Goal: The EU is actively trying to restart trade talks with the US and reach an agreement before August 1st to prevent the US tariffs from coming into effect.
Diplomatic Efforts: EU trade officials are traveling to Washington for talks, and EU trade Commissioner Maros sefcovic is scheduled to speak with US Trade Representative Jamieson Greer.
EU’s Concern: EU officials believe the threatened 30% US tariffs would “prohibit” future EU-US trade.
Background and Existing Tariffs:
Previous US Tariffs: European businesses are already facing 10% tariffs on imports into the US sence early April, with steel products and cars facing higher levies. Uncertainty: there’s still uncertainty about whether the White House will follow through on separate threats to raise tariffs on pharmaceuticals.
The Article’s Tone:
The article conveys a sense of urgency and concern from the EU’s viewpoint. They are actively trying to de-escalate the situation and avoid further damage to trade relations. The mention of “walking blindly into trouble” in one of the linked articles suggests a broader concern about market stability in the face of these trade disputes.
