EU and USA before customs diplomacy: agreement or new special tariffs?

EU and USA before customs diplomacy: agreement or new special tariffs?

In the current tariff dispute between the EU and the USA, Ursula von der Leyen, President of the European Commission, has announced a new proposal from the US government that aims to reach an agreement. The discussions take place against the background that the EU is preparing for possible special tariffs worth up to 95 billion euros on US exports ZDF today reported.

Von der Leyen emphasizes that the EU is ready to reach an agreement, but at the same time remains prepared in the event that a satisfactory solution is not reached. The proposal is currently being assessed by the EU, with all options on the table to protect Europe's interests. The background to these negotiations is the July deadline set by US President Donald Trump, which is further increasing the tension in trade relations.

Impact on trade

The upcoming special tariffs could primarily affect industrial and agricultural products, including cars, sweet potatoes and whiskey. So this could have a significant impact on transatlantic trade. The EU sees the US tariffs as unjustified and argues that they are not in line with World Trade Organization (WTO) rules. In this context, the EU plans to sue the USA over these tariffs at the WTO, which could further inflame trade tensions.

Companies in Germany, which are particularly affected by the tariffs, are now looking for alternative sales markets in order to avoid the effects of Trump's tariff policy. German companies face the challenge of adapting their export strategies if the customs dispute does not end.

Risks and new options

In addition to the tariff threats, the EU is considering export restrictions on products worth 4.4 billion euros, including scrap steel and chemicals. EU Trade Commissioner Maros Sefcovic also warns of the possibility of further US tariffs on European goods. Washington justifies its tariff measures with security interests, which makes the talks all the more complex.

The trade conflict could affect exports worth 170 billion euros, equivalent to around 97 percent of EU exports to the US. In order to defuse the dispute, the EU offered the Trump administration an agreement to mutually eliminate all tariffs on industrial goods, but this has not yet been accepted. The possibility of reaching new agreements, such as expanding American exports of liquefied natural gas (LNG) and importing military technology and agricultural goods, are seen as potential solutions.

Negotiations remain tense and the July deadline will be crucial to avoid further escalation of the trade dispute as the EU continues to work decisively towards negotiated outcomes.