EU faces tariff turmoil as Trump escalates trade tensions
The President of the European Commission, Ursula von der Leyen, announced on Sunday on platform X that she had a "good call" with the US President Donald Trump. The topic was the tariffs imposed on the EU by the American administration.
What do you need to know?
- European Union is prepared for prompt negotiations with the USA, aiming to reach an agreement by 9th July.
- Donald Trump threatened to impose 50% tariffs on imports from the EU starting 1st June, prompting a reaction from the European Commission.
- German Finance Minister Lars Klingbeil urged the USA to engage in serious negotiations, highlighting that the tariffs could damage both the American and European economies.
What are the positions of the EU and the USA?
"Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9," Ursula von der Leyen wrote on X.
The head of the EC assured that "EU and US share the world’s most consequential and close trade relationship."
On Friday, Trump stated that he "is not seeking a trade agreement" with the European Union and threatened to impose 50% tariffs on imports from the EU starting 1st June.
Will the tariffs affect economies?
The European Commission reacted to Trump's threats by calling on the USA to enter negotiations.
- The EU's fully engaged, committed to securing a deal that works for both [sides - ed.] - said the EU Trade Commissioner Maros Sefcovic. Meanwhile, German Finance Minister Lars Klingbeil warned that American tariffs could harm both the US and European economies.
What are the possible consequences?
At the beginning of May, the EU threatened to impose tariffs on imports from the USA, including cars and aeroplanes, valued at approximately €95 billion if negotiations do not yield results. The European Commission also announced plans to bring the matter to the World Trade Organization.
In recent months, the US administration has imposed tariffs on the European Union three times, further complicating the situation.
