EU extends tariff break: Trump threatens new trade wars!

EU extends tariff break: Trump threatens new trade wars!

A lot is happening in the customs conflict between the EU and the USA. The EU has currently decided not to impose counter tariffs against the United States for the time being. EU Commission President Ursula von der Leyen has announced that this suspension of measures will be extended until the beginning of August. This gives the negotiating partners additional time to find a solution and avert the impending trade war. Loud Radio Ennepe Ruhr The EU will try to intensify negotiations in the coming weeks, as the US has already sent a letter about new import tariffs that could be imposed from August 1st if no agreement is reached.

In a letter to von der Leyen, US President Donald Trump emphasizes the need to increase import tariffs by 30 percent in order to offset the US's trade deficits with the EU. Those tariffs would be in response to existing EU measures planned in response to US tariffs on steel and aluminum products. Originally, the EU could have activated the first counter tariffs on US exports worth 21 billion euros on Tuesday, but this measure was postponed for the time being in order to create space for further negotiations.

What is the EU planning?

The EU has already drawn up a list of other US goods that could be subject to import duties of up to 25 percent. Agricultural products such as corn and soybeans, textiles and special items such as make-up would be affected. It is particularly noteworthy that American bourbon whiskey is excluded from the planned counter-tariffs; lobbying from France and Italy has had an influence here. However, Trump threatened drastic tariffs of up to 200 percent on European wine and champagne exports if an agreement is not reached. daily news reports on these significant tensions and the upcoming negotiations that could affect the entire economy.

In addition to the positive aspects of the negotiations, there are also legitimate concerns. The EU fears that its own companies could be damaged by the tariffs. Against this background, the willingness to negotiate a solution was emphasized again in order to resolve the conflict as peacefully as possible. Trade relations are already a hot potato, especially after the EU achieved a trade surplus of 157 billion euros with the US last year. Half of the liquefied natural gas (LNG) for the EU already comes from the United States.

Was that it with the tariffs?

For many companies on both sides of the Atlantic, the uncertainty surrounding impending tariffs is particularly stressful. Experts fear that tensions between the states will continue to rise, especially as both sides are not afraid to take new measures to counter the situation. On the other hand, the USA is in the process of readjusting its trade relations with other countries such as China. While Trump is threatening higher tariffs on China, China is also announcing corresponding countermeasures to protect its own interests. The current situation remains tense and it will be interesting to see how the negotiations develop until the beginning of August. South Germans In this context, highlights the urgency as the 90-day pause in the trade conflict is about to end.