EU and USA in the customs dispute: Urgent negotiations before July!

EU and USA in the customs dispute: Urgent negotiations before July!

Amid a growing customs dispute between the European Union (EU) and the USA, EU Commission President Ursula von der Leyen held a conversation with US President Donald Trump on May 26, 2025. The aim of this telephone call was to initiate rapid and constructive negotiations to resolve the trade dispute. The EU has made an offer to reciprocate all tariffs on industrial goods and sees this as an attractive starting point for talks. Another phone call between EU Trade Commissioner Maros Sefcovic and US Trade Secretary Howard Lutnick is planned for Monday afternoon to advance negotiations.

In contrast, Trump threatened a flat 50% tariff on EU imports, set to come into effect in July if no deal is reached. Bernd Lange, the chairman of the Trade Committee in the European Parliament, warned the USA against underestimating the EU. He emphasized that the EU can react quickly in the event of further US tariffs and is ready to introduce counter tariffs, including against US services. In addition, the EU has issued a new anti-coercion tool that could exclude US companies from tenders.

Urgency of negotiations

The EU has set clear deadlines to find a solution to this matter. As part of the negotiations, which are expected to last until July, special tariffs on US exports worth up to 95 billion euros are being discussed. These tariffs could be imposed on a wide range of products, including cars and agricultural products such as sweet potatoes and whiskey. According to the information from ZDF The EU sees the US tariffs as unjustified and plans to challenge them at the World Trade Organization (WTO).

In addition, the EU is considering export restrictions on products worth 4.4 billion euros, including steel scrap and chemical products. An EU trade commissioner warned that possible new US tariffs could affect exports worth 170 billion euros. In total, around 549 billion euros of EU exports to the USA would be affected by tariffs, which illustrates the urgency of the negotiations.

Long-term impact on trade

The rising tensions are already having an impact on companies in Germany that are looking for alternative sales markets to avoid the negative effects of customs policy. The EU is firmly behind the negotiations and hopes for results before the deadlines expire. In addition, an agreement could also include the expansion of American exports of liquefied natural gas and the import of military technology and agricultural goods.

As part of the measures, a trade committee delegation will be in Washington this week to discuss common interests in trade and investment relations and support the negotiation process. It remains to be seen whether the talks between the USA and the EU can be steered on a positive course or whether the threatened tariffs will become reality.