How does the EU react to Trump's tariffs?

The EU is under pressure as a result of Trump's tariffs...

The European Union is increasingly coming into the line of fire of Donald Trump and his tariff policy – not least because of its nearly €200 billion surplus in trade with the United States. Donald Trump is therefore taking a harder line with Europe and has imposed various tariffs that are hitting the EU hard:

• Sectoral tariffs on steel and aluminum: Since June 4, tariffs of 50% have been imposed on all imports of steel and aluminum and their derivatives, such as beverage cans and fitness equipment. Lower tariffs of 25% were in place from March 12 to June 4.
• Sectoral tariffs on cars and car parts: Since April 3, a tariff of 25% has been imposed on finished cars and, since May 2, on car parts such as engines and gearboxes.
• General (“reciprocal”) tariffs: Additional tariffs of 10% have been in place on most other goods since April 9. Exceptions are made for some goods such as pharmaceuticals and fossil fuels. The higher additional tariff of 20% is set to apply again from July 9.

These tariffs reduce the competitiveness of EU products on the US market and thus burden the economies of the member states. After all, the US is the most important market outside Europe for European companies. The European Commission, led by President Ursula von der Leyen, is therefore under pressure to negotiate a significant reduction or even the withdrawal of these tariffs.

... but negotiations are stalling

In the week of April 7, the European Union sent an official delegation to Washington, DC, to begin direct negotiations with the Trump administration. However, these talks are proving difficult. A trade agreement proposed by the EU on manufactured goods failed in May because it largely excluded the agricultural sector, which is important to the US. However, some member states are resisting the opening of the agricultural market, and this resistance is unlikely to diminish with the election of the national conservative Nawrocki as Polish president.

In addition, the Americans are apparently insisting on their general 10% tariff as a minimum rate, while the EU – unlike the UK – does not want to accept any general, unilateral tariff increases by the US. This is because Brussels sees itself more as a negotiator on an equal footing with the US, as China has exemplified. However, China's self-confident stance provoked Donald Trump to escalate the trade dispute. The fact that the EU has not allowed the conflict to escalate so far is probably due to its dependence on the US for security. The EU leadership therefore apparently wants to wait until after the NATO summit at the end of June before responding confidently. After that, the risk of escalation will increase.

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